Week Ahead 17 July | EEF

Week Ahead 17 July

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All eyes on inflation

This week the ONS will release inflation statistics for June. Inflationary pressures have intensified over the past year as a result of the sterling depreciation in the aftermath of the UK's vote to exit the EU. Consumer price inflation soared to a new high in the year to the end of May, reaching 2.9% up from 2.7% in the previous month. Yet the peak in inflationary pressures is likely behind us. In our latest Manufacturing Outlook, price and margin balances suggested the steady rise in inflation has lost some ground in the second quarter. Therefore, we expect CPI inflation to come in line with the previous month.


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