The further fall in sterling over the past week or so will add to the inflationary pressures already set to build over the next few years. The drop in the exchange rate will have both direct and indirect effects on consumer prices, as wholesalers and retailers face higher imported good prices, and domestic producers pass on higher input costs to other domestic firms.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services