Fact Service (June 2018)

Issue 25

Forecasts for economy


There’s been little overall change in forecasts between May and June, according to the latest Forecasts for the UK economy from the Treasury.


The fourth-quarter range for inflation under the Retail Prices Index remains at 2.4% up to 4.0% with a midpoint (median) figure of 3.1%. However, several forecasters expect inflation to be higher. Oxford Economics thinks it will be up to 3.5% rather than their previous forecast of 3.2%; and EY Item Club now thinks it will be 3.4% rather than 3.1%.


Against these increases, forecasters expects workers living standards to suffer as the prediction for growth in average earnings over the year has been cut to 2.5% by Oxford, while EY’s forecast rise remains at 2.8%.


The range of forecasts for average earnings growth is from 2.3% up to 3.2%, with a median of 2.7%.

https://www.gov.uk/government/collections/data-forecasts#2018


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