Inflation could jump to 4% by late 2017, thinktank warns

'Temporary phenomenon'

Consumer price inflation could soar to 4% during the second half of 2017, according to the latest forecast from the National Institute of Economic and Social Research.

The leading thinktank said it had recognised signs of "substantial impending inflationary pressure" following the depreciation of sterling against the dollar after June's Brexit vote. It added the rise in prices will "accelerate rapidly" as the fall in sterling is passed onto consumers. The latest figure is higher than the previous forecast of 3% in August, which was given before CPI rose from 0.6% to 1% in September - where the rate of CPI remains today. This increase has already seen the cost of clothes, petrol and hotel rooms increase, according to the BBC. Simon Kirby, head ...