In November the consumer price index rose to 3.1%, its highest level in 5 years, and the point at which the governor has to write an explanatory letter to the chancellor.
The rise in prices throughout 2017, came primarily on the back of the sterling depreciation, as well as the rise in commodity prices, notably oil towards the back end of the year. We now believe that the pass through of the sterling depreciation has been exhausted, however rising oil prices should keep inflation above target. That said, we expect inflation to being to moderate this year, and don’t envisage it rising above its current level…don’t hold us to it though…
Today, in partnership with Santander, we released our Chemicals sector bulletin. This takes a deep dive into the chemicals sector, looking at its make-up, products, structure, opportunities, risks and long run trends. You can read it here, along with our other sector bulletins.