Article 2M42E Inflation puts the brakes on Britain's economic activity

Inflation puts the brakes on Britain's economic activity

by
Julia Kollewe
from on (#2M42E)

Official GDP estimate - due on Friday - will reflect how weaker pound has pushed up the cost of imported goods

Britain's economy cooled considerably in the first three months of the year as higher inflation put a squeeze on disposable incomes, official figures are expected to show this week.

The economy shrugged off the shock of the Brexit vote last June and has been surprisingly resilient, with growth rates of 0.5% in the third quarter of 2016 and 0.7% in the final quarter.

Related: Whatever the IMF thinks, we are a long way from the boom time of 2007 | Larry Elliott

Related: IMF ratchets up UK economic growth forecast to 2%

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