Deloitte chief economist comments on today's inflation figures

Commenting on inflation figures, published by the ONS today, Ian Stewart, chief economist at Deloitte, said:

“The unleashing of pent-up demand into economies with reduced capacity is driving inflation across the world. The Bank of England, like the US Federal Reserve and the European Central Bank, believe that supply bottlenecks and rising commodity prices will not last and inflation will ease next year.

“The big question is whether price rises drive wages higher, creating a wage-price spiral. With more than three million people on furlough and unemployment well above pre-pandemic levels that looks unlikely - but not wholly impossible.”

-Ends-

Notes to editors

About Deloitte
In this press release references to “Deloitte” are references to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”) a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms.

Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.

The information contained in this press release is correct at the time of going to press.

For more information, please visit www.deloitte.co.uk.