Deloitte senior economist comments on today's inflation figures

Commenting on the latest inflation figures, published by the ONS today, Debapratim De, senior economist at Deloitte, said:

“Inflation hit its highest level in 30 years in December. But unlike in the early 1990s, this inflationary streak is largely driven by surging commodities and goods prices - a consequence of pandemic-related shifts in demand and supply.

“Prices for services are rising at a much slower pace, indicating relatively weaker domestic price pressures. This rapid rise in the cost of living seems more likely to squeeze real earnings and consumer spending power than trigger a wage-price spiral.”

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