NOTTINGHAM, NOTTINGHAMSHIRE, UK (MAY 15, 2017) (BBC) – British inflation hit its highest level since September 2013 last month, extending its sharp rise since the vote to leave the European Union and tightening the squeeze on living costs as a national election approaches.
Consumer prices rose by an annual 2.7 percent, data showed on Tuesday (May 16), and they look set to rise further due to the fall in the value of the pound and the recent rise in global oil prices.
Britain’s economy was barely ruffled last year by the shock vote to leave the EU. But the steady rise in inflation since then, combined with weak wage growth, has slowed its momentum this year.
Last week, Bank of England (BoE) Governor Mark Carney warned 2017 will be challenging for consumers, with inflation now almost certain to overtake wage growth.