As has been long expected, UK inflation has soared up to its highest point in six months. The economy and business sectors continue to battle against Brexit anxiety; this new development will not be welcomed. Higher prices on consumer goods could lead to a further tightening of purse strings across the country. With the sector struggling to raise profit as is, this further strain on spending behaviour could bring forward more insolvencies and financial difficulty for the high street.
Economists had not expected such a shift in trajectory, with the Consumer Prices Index forecast to rise to just 2.4 per cent. The cost of living and doing business will soon rise, with higher prices for essential commodities placing further strain on household budgets.
This has not come at a good time for Britons, with wages finally increasing and placing consumers in a more improved financial position. This twist in inflationary pressure is bound to reverse the progress, with pay packets unlikely to cover higher living expenses.
The Office for National Statistics, who released the data, revealed that recent increases in theatre tickets and other recreational activities had driven the new inflationary rise. Some economists have suggested the “uptick” could be temporary, but time will have to tell.