Since October 2015, inflation has surged from -0.1% and in May hit  a five-year high of 2.9%.
Since October 2015, inflation has surged from -0.1% and in May hit  a five-year high of 2.9%.

Brits’ Living Standards Falling

Brits’ Living Standards Falling

Living standards in Britain will stay squeezed, economists warn, as data out this week is expected to show inflation resumed its upwards march in July. Office for National Statistics figures are tipped to record that inflation, as measured by the consumer prices index, rose by 0.1 percentage points to 2.7% in July.
Since October 2015, inflation has surged from -0.1% and in May hit a five-year high of 2.9%. It then surprised markets by slipping back to 2.6% the following month on the back of lower petrol prices, Yahoo reported.
While inflation is forecast to rise again, it is thought ONS data on Wednesday will show that wage growth has stalled at 1.8%. Economists warn that with inflation set to climb further, due to energy price hikes, rising food costs and stagnant wages, the squeeze on living standards will continue.
Investec chief economist Philip Shaw said: “Inflation has not reached its peak yet, we think CPI will hit 3% in the next two to three months. It’s fairly well documented that EDF Energy has increased its energy prices, which will feed into the numbers, while food-price inflation is accelerating. The squeeze on incomes is still on.”
Capital Economics UK economist Ruth Gregory said: “This week’s inflation and labor market figures are likely to reveal that the real pay squeeze intensified in June.” The ONS economic data is also expected to show that the unemployment rate remained steady at 4.5%, its lowest level since July 1975.



Short URL : https://goo.gl/rNQYXv
  1. https://goo.gl/aRQRdi
  • https://goo.gl/7D5qUa
  • https://goo.gl/DsmvCZ
  • https://goo.gl/yj8sUy
  • https://goo.gl/7FTkSA

You can also read ...

Analysts say the outlook for Britain’s public finances had “weakened significantly” with Brexit likely to put further pressure  on the country’s economic strength.
Moody's cut Britain's long-term credit rating Friday, citing...
Deutsche Bank CEO John Cryan (L) and ECB President Mario Draghi at a conference in Frankfurt on Sept. 6.
The head of Germany’s biggest private lender wants the...
The People’s Bank of China
China’s small banks are struggling to raise funds through...
Portugal Budget Deficit Narrows
Portugal’s budget deficit narrowed to 1.4% of gross domestic...
President Emmanuel Macron (C) signs a set of executive orders making sweeping changes to France’s complex labor laws on Friday.
France’s private sector expanded the most since May 2011,...
Indonesia Cuts Key Rate
Indonesia’s central bank cut its main interest rate for the...
Brazil Frees Up $4b in Gov’t Spending
Brazil’s government has freed up 12.8 billion reais ($4.1...
India Eases Foreign Investment Rules
The Reserve Bank of India eased rules governing foreign...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.