Inflation likely to be well above 4% by the end of the year, says IEA expert
20 October 2021
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In the Media
IEA referenced by The Times
20 October 2021
Energy and Environment
Andy Mayer quoted in the Express Online
20 October 2021
Economic Theory
Responding to ONS consumer price inflation figures for September 2021, Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, said:
“The small dip in UK consumer price inflation in September, from 3.2 per cent to 3.1 per cent, is good news and probably a relief both to the Bank of England and the Chancellor. But it does not change the big picture: there are huge price pressures in the pipeline, and inflation is still likely to be well above 4 per cent by the end of the year.
“UK food and energy price inflation at least remains low compared to the rest of Europe, as well as the US, despite fears about the impact of Brexit. This partly reflects the strengthening of the pound over the last 12 months, especially against the euro, as the UK economy has rebounded more quickly than expected. In turn, this has helped to keep a lid on import prices.”
ENDS
Notes to editors
Contact: Emily Carver, Head of Media, 07715942731
IEA spokespeople are available for interview and further comment.
“The small dip in UK consumer price inflation in September, from 3.2 per cent to 3.1 per cent, is good news and probably a relief both to the Bank of England and the Chancellor. But it does not change the big picture: there are huge price pressures in the pipeline, and inflation is still likely to be well above 4 per cent by the end of the year.
“UK food and energy price inflation at least remains low compared to the rest of Europe, as well as the US, despite fears about the impact of Brexit. This partly reflects the strengthening of the pound over the last 12 months, especially against the euro, as the UK economy has rebounded more quickly than expected. In turn, this has helped to keep a lid on import prices.”
ENDS
Notes to editors
Contact: Emily Carver, Head of Media, 07715942731
IEA spokespeople are available for interview and further comment.
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