Comments on rise in inflation
“The spiralling cost of energy and food are the main components of the high inflation we have today. What appears to be a foregone conclusion, judging by the recent 0.2% downturn in GDP, is that the UK is moving into recession along with other global economies. This should have the effect of bringing inflation down, however, there are still global shortages of food, with Russia’s invasion of Ukraine being a large contributory factor.
“What is notable about the CPI inflation figure is that it has been calculated using subsidised energy prices, so the 11.1% rate is lower than if there was no energy price cap in place. This cap is due to be removed, or reviewed, in April 2023 but if it is taken away, inflation may well will pick up again. It could be a roller coaster ride for inflation in the next year.”
Simon Webb, managing director of capital markets and finance at LiveMore