Inflation rising, and more in the post

newspapers-444447_1280.jpgWe’re still well off letter-writing territory, but inflation saw a significant jump from 1.8% year-on-year in January to 2.3% last month. This is the highest rate of inflation since September 2013 and marks the arrival of the consumer price rises that the Ulster Bank NI PMI has been flagging for some months. The main driver is the acceleration in the price of consumer goods – everything from new cars to newspapers – where inflation was virtually non-existent just four months ago. Continue reading

Last orders for low inflation?

For the last two years or so, UK households have been in the midst of what has been dubbed a consumer sweet spot – low inflation aided by a sustained period of falling food, fuel and petrol prices. But times are changing. The significant fall in the value of the pound has started to fuel import price inflation – while exporters benefit from a weak pound, it is worth remembering we import more than we export. But it will be well into 2017 before we see the main impact of sterling’s depreciation on consumer prices. Continue reading