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14 November 2018

Inflation remains steady – but what will Brexit bring?

Against expectations of a rise, UK inflation remained steady at 2.4% in October, according to figures released by the Office for National Statistics.

Joel Dungate, Investment Analyst, said: “With the latest figures showing consumer prices stayed flat at 2.4% in October, some people are asking whether inflation has peaked. It reached a five-year high of 3.1% last November, driven by Sterling’s decline following the Brexit vote, but since then has steadily declined towards the Bank of England’s 2% target.

“Whether inflation has peaked or not, then, will probably largely depend on the outcome of the Brexit deal. Any deal considered unfavourable by investors will result in further Sterling weakness and a likely rise in inflation. In the meantime though, with separate figures showing wages grew at their fastest pace for a decade, consumers will hopefully start noticing an increase in their purchasing power.”

Inflation remains steady – but what will Brexit bring?
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