Commenting on the ONS consumer price figures out today, Andrew Sentance, senior economic adviser at PwC, commented:
"This latest rise in inflation - to just under 3% - is not a great surprise. The weakness of the pound since the Brexit vote last year is continuing to feed through into higher prices in the shops and online. Clothing and footwear prices are up by 4.6%, the biggest increase for at least a decade. Goods prices in general are up 3.1% on a year ago, the biggest annual rise since the spring of 2012.
"With the pound continuing to struggle on the foreign exchange markets, it is likely that this surge in inflation has further to run and will take CPI inflation to over 3 percent later this year. With very well-developed and complex supply chains, it can take a number of years for a decline in the exchange rate, which raises import prices, to feed through fully to consumers.
"This suggests that the recent squeeze on consumer spending from higher inflation will continue to dampen growth in the UK economy in the second half of this year and next year. There is not much sign yet that consumers will get any early relief from the surge in inflation following the Brexit vote last summer."
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