The impact of Sterling’s depreciation will continue to affect our domestic inflation as the cost of imports will rise accordingly. The world’s worst performing currency of 2016, Sterling is now worth 20% less against the US dollar than it was prior to 23 June. Not only affecting the price of fuel and finished goods such as imported fashion items and food and drink but all the raw materials used to produce anything from motor cars to fridges are also adversely affected.
The majority of economic analysts, both domestic and international, believe that inflation is therefore on a rising trend that will soon eclipse the Bank of England’s target level of 2%, some anticipate a CPI level of around 3% by the end of 2017.
One group of the population that is somewhat sheltered from this prospect is pensioners. They are reassured by the current triple-lock mechanism introduced by the Government that guarantees their state pension will rise each year by whichever measure of the inflation rate, average earnings or 2.5% is greater.
Issued by: Enable Independent Financial Life Planners • 25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE
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