Deloitte chief economist comments on today's inflation figures

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

“Goods inflation is running at the highest level in 30 years, fuelled by pandemic-related dislocations between supply and demand. But price rises for services are at much lower rates, pointing to more muted domestically-generated inflation.

“Just as happened during the UK’s last inflationary surge, in 2011, earnings lag behind inflation. Today’s bout of inflation is more likely to play out as another squeeze on incomes than a runaway wage-price spiral.”

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