Commenting on the inflation figures for October 2016, published today by the ONS, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:
“While the slight fall in inflation in October will surprise many, the significant rise in the cost of raw materials suggests that price growth is likely to resume its upward trend in the coming months. The uncertainty over Brexit is likely to maintain the downward pressure on sterling’s value, and push prices higher over the next year.
“Rising inflation is likely to weigh heavily on the UK’s near-term economic outlook by reducing disposable incomes in real terms and increasing input costs for businesses. Therefore, next week’s Autumn Statement must focus on measures to boost confidence and growth, including directly investing in our infrastructure and supporting business investment.”