Brexit Inflation Juggernaut Won't Let U.K. Shoppers Off Lightly
- Consumer prices remain below BOE target but are set to rise
- Data published Wednesday set to show no help from wages
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Don’t be fooled. U.K. inflation’s slower-than-expected ascent toward 2 percent doesn’t mean the consumer is going to have it easy this year.
After price growth fell short of expectations in January, economists were quick to restate their view that energy costs and a weaker pound mean inflation is still primed to accelerate. A Bloomberg survey sees it hitting 2.8 percent by the last quarter of this year, while some say growth faster than 3 percent is more likely. And with the labor market showing signs of cooling, households could be in for a pinch this year.