Higher UK inflation likely to hurt consumer spending - BoE's Haldane
Reuters
Published Jan 05, 2017 13:41
Higher UK inflation likely to hurt consumer spending - BoE's Haldane
LONDON (Reuters) - Higher inflation is likely to hurt British consumer spending this year although such an outcome is not inevitable, Bank of England Chief Economist Andy Haldane said on Thursday.
Haldane said the effects the sterling's slump since voters decided in June to leave the European Union was starting to trickle through in to higher shop prices.
"That will in turn produce something of a squeeze on the spending power of consumers and may lead them to throttle back somewhat in their spending plans," Haldane said at an event in London hosted by the Institute for Government, a think tank.
"It might not happen, they might choose to run down their savings. But it's possible, indeed I'd say likely that there will be something of a slowdown."
(This story corrects name of organisation hosting event.)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.