• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-25 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video

UK: First post-Brexit vote inflation figure edges up

UK: First post-Brexit vote inflation figure edges up
  • Alicia Villegas
  • 18 August 2016
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

July consumer price index (CPI) inflation data, published on 16 August, showed a small uptick of the headline inflation rate to 0.6% year-on-year, the highest since 20 months.

The core rate, excluding volatile items such as energy prices and food, remained unchanged at 1.3% year-on-year. The July inflation readings had been widely anticipated, as it was the first set of inflation data following the Brexit vote on 23 June.

Related articles

  • UK August inflation: Taking a break before the uptrend continues
  • Brexit ‘no’ a growing probability: Julius Baer
  • UK growth: Once again defying the Brexit
  • Bank of England: Enough to limit the Brexit fallout?

While at first sight a higher inflation reading due to the clobbered pound sterling is a logical Brexit-fallout effect, it is yet far too early to assess the full extent of the inflationary effect, also due to the lagging characteristic of inflation.

The Bank of England presented an inflation forecast with head-line CPI averaging 2.2% in 2017, while our model shows a more modest rise to an average of 1.7%.

Much is still to happen with regard to the implementation of the Brexit and uncertainties remain.

We therefore see current CPI forecasts rather as an indication for the trend over the next months. In anticipation of Tuesday  data, the pound sterling had been sliding a new three-year low vs. the euro.

We expect further gradual pound weakness ahead, given the Bank of England’s policy response and negative Brexit effects on the UK’s current account.

David A. Meier is economist at Julius Baer

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Brexit
  • Opinion
  • United Kingdom
Back to Top

Most read

Will Cardano's coming of age hit Bitcoin and Ethereum?
Will Cardano's coming of age hit Bitcoin and Ethereum?
UK government must 'U-turn' on pension age change
UK government must 'U-turn' on pension age change
UK life office CEO dies
UK life office CEO dies
Dubai financial regulator names new chairman
Dubai financial regulator names new chairman
US regulator targets 'opaque' money laundering in beneficial ownership notice
US regulator targets 'opaque' money laundering in beneficial ownership notice
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading