Commenting on the UK economy flirting with a recession despite inflation slowing, Dan Boardman-Weston, CEO and Chief Investment Officer at BRI Wealth Management,
said:
“UK inflation slowed to 10.1% in January, down from 10.5% in December and below consensus expectations of 10.3%.
The rate of inflation continues to run at multi-decade highs, with the primary drivers of inflation being gas and electricity bills and food prices.
The Bank of England remains in a really tricky spot, as they need to raise rates given that inflation is far in excess of their 2% target but the economy is in a poor state and flirting with a recession. Inflation will continue to decelerate over the coming months due to falling demand, increased supply and base effects taking hold but it will take some time to reach the 2% target.
The Government and Bank of England have a difficult balancing act ahead of them and hopefully will be successful in reducing inflation without causing too much economic pain.
This looks like a big ask though.”