Inflation on the way

SGF Conference 2016.. Photograph by Mike Wilkinson....13/10/16 Copyright photograph by Mike Wilkinson. Contact Mike on 07768 393673
Marcus Wright, RBS.

WHAT can retailers expect from the economy as Brexit and other changes take effect? Presenting the big picture, RBS economics adviser Marcus Wright told conference the UK economy had handled the referendum quite well – in part because the economy had been strong before the vote, with growth and job creation outpacing other countries.

However, we can expect big changes, he suggested. Inflation will likely be 2 or 3% this time next year but wage increases will not beat inflation without productivity increases, so spending power may well be reduced.

Infrastructure investment was required and housing shortages, caused by political decisions not to facilitate enough new housing, had become Britain’s main economic problem, he said.