Inflationary pressures look set to ease for families 14 November 2018 Inflation (CPIH) remained at 2.4 per cent in October, but the underlying trends suggest that price pressures could ease in the coming months, the Resolution Foundation said today (Wednesday) in response to the latest figures. Over the past 20 months, persistently high inflation has eaten into real wages, and put a lid on any building pay pressure. However, the Foundation notes that the inflation spike driven by the post-referendum depreciation in sterling has now mostly subsided. In its place are domestic drivers of inflation, such as wage growth and imported energy costs, following a rise in oil and gas prices over the summer. The good news is that the latter is likely to fade over the coming months, as falls in the oil price work their way into domestic costs. Stephen Clarke, Senior Economic Analyst at the Resolution Foundation, said: “Stubbornly high inflation rates, which have persisted for almost two years, have put a lid on any signs of a pay recovery. “But while inflation remained above target in recent months, there is good reason to believe that price pressures could start to ease. This would provide some much-needed respite for family finances.”
