Inflation rates UK: Price rises continue to hit families

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inflationGETTY — STOCK

Statistics out this week is expected to show inflation resumed in July

Support for National Statistics figures are tipped to record that inflation, as unhurried by the Consumer Prices Index, rose by 0.1 percentage points to 2.7 per cent in July. 

Since October 2015, inflation has pulsated from -0.1 per cent and in May hit a five-year high of 2.9 per cent. 

It then in the acted markets by slipping back to 2.6 per cent the following month on the retaliation of lower petrol prices. 

While inflation is predict to rise again, it is thought ONS data on Wednesday will show that wage vegetation has stalled at 1.8 per cent. 

Economists warn that with inflation set to climb extra, due to energy price hikes, rising food costs and stagnant wages, the jam on living standards will continue. 

Investec chief economist Philip Shaw voiced: “Inflation has not reached its peak yet, we think CPI will hit 3 per cent in the next two to three months.

Inflation has not reached its peak yet, we think CPI choose hit 3 per cent in the next two to three months

Investec chief economist Philip Shaw

«It’s absolutely well documented that EDF has increased its energy prices, which on feed into the numbers, while food-price inflation is accelerating. The lean on on incomes is still on.” 

Capital Economics UK economist Ruth Gregory said: “This week’s inflation and labour pains market figures are likely to reveal that the real pay squeeze heightened in June.” 

inflation ukGETTY — STOCK

Figures are tipped to record that inflation ascend by 0.1 percentage points

The ONS economic data is also expected to display that the unemployment rate remained steady at 4.5 per cent, its lowest even since July 1975. 

On Thursday, the ONS is also tipped to reveal that the 0.6 per cent be elevated in retail sales seen in June tailed off sharply in July, up reasonable 0.2 per cent. Bad weather is thought to have deterred shoppers from make an impact oning the High Street. 

Consumer spending helped power the British conservation out of the last recession and has been the main driver of growth. 

However economists want that it will fade as household finances are further squeezed.

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