PARLIAMENTARY WRITTEN QUESTION
Consumer Prices Index (19 December 2017)
Question Asked
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of the UK leaving the EU on the Consumer Prices Index rate of inflation.
Asked by:
Anna McMorrin (Labour)
Asked by:
Anna McMorrin (Labour)
Answer
In their November 2017 Economic and Fiscal Outlook, the OBR forecast that CPI inflation would average 2.7% in 2017. This is above the Bank of England’s 2% inflation target, as the past depreciation of sterling has pushed up import prices. The OBR expect this effect to fade over 2018, so inflation is expected to fall back towards the 2% target by the end of the year.
The government is helping with the cost of living today by letting people keep more of what they earn, raising the National Living Wage, freezing duty on fuel and alcohol, and tackling housing costs.
Answered by:
Steve Barclay (Conservative)
8 January 2018
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