Britain’s economy faces a ‘prolonged period’ of weaker growth as consumer spending slows and business curbs investment, according to a report published on the BBC website.
Although the EY Item Club think tank predicts the economy will grow 1.9 per cent this year, it expects that performance to fizzle out as inflation rises. The economy’s stability since June’s Brexit vote was ‘deceptive’, EY said. Meanwhile, a senior Bank of England official told the BBC that inflation may surpass its 2 per cent target. The Bank’s deputy governor Ben Broadbent told Radio 5 live that sterling’s weakness would fuel inflation, but that controlling prices with tighter monetary policy could hit growth and jobs. And The Mail on Sunday reported that retailers are poised to impose a wave of price rises that could add 5 per cent to shopping bills in the new year after the pound plunged by more than the worst forecast of so-called ‘Project Fear’.
The hikes, expected to hit soon after Christmas, will cost consumers an estimated £15 billion next year. A
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