February inflation jumping to 2.3%
Commenting on the latest inflation rate, Markus Kuger, senior economist, Dun & Bradstreet, said:
“News from the ONS this morning that the UK’s inflation rate has risen to 2.3% (its highest point since September 2013) has fallen in line with our predictions of a continued upturn, though it has surprised many, as inflation grew by a larger-than-expected 0.5% from January to February. Inflation levels are well below the near 5% peaks experienced in 2008 and 2011, but the Bank of England has said it will peak at 2.8% next year. Consumer prices are increasing at the highest rate in years, partly caused by rising global commodity prices. This could impact households’ disposable income and thereby also negatively impact the economy going forward.
“Currently, the UK economy is performing as well now as it was before the Brexit referendum, though it remains to be seen whether this will continue throughout 2017. With the March 29 date now confirmed for Article 50 to be invoked businesses – and, to an extent, consumers – will be cautious about what the next two years might hold. Against this backdrop of uncertainty, it’s vital that companies doing business with or in the UK use data and analytics to stay abreast of market trends, and effectively manage relationships with customers, suppliers and partners to minimise risk.”