Inflation will rise to 2.5% as wages and employment grow

Cost of living: inflation is expected to have risen to 2.5%

The increase in energy costs will increase inflation to 2.5%, but wages and employment are expected to grow

  • The inflation measurement of the July consumer price index is published on Wednesday
  • It is expected to have increased to 2.5% from 2.4% in June
  • Labor market figures released on Tuesday probably provide better news

Harriet Dennys for the mail on Sunday

Inflation rose last month, rising for the first time since November, this week's figures are expected to show.

Analysts at Capital Economics said the measure of inflation measured by the consumer price index in July was likely to rise to 2.5 percent when it launches on Wednesday, up from 2.4 percent in June.

The consultancy said that increases in energy costs led to higher prices. In a note to clients, he added: "With the prices of sterling oil rising by more than 50 percent in annual terms in July and with the rise in the prices of public services, it is likely that the contribution of the prices of the energy to inflation. "

Cost of living: inflation is expected to have risen to 2.5%

Cost of living: inflation is expected to have risen to 2.5%

However, the labor market figures, which are published on Tuesday, are likely to provide better news.

Capital Economics said it expected the unemployment rate to fall to 4.1 percent in July from 4.2 percent in June, and that overall wage growth rise to 2.6 percent in July, from 2.5 percent. percent in June.

But the consultancy warned that employment growth could slow down and said: "Surveys suggest that employers find it more difficult to hire adequate staff."

market data

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