Imported inflation is a risk, no fear of recession – Investec

An all out segment on UK macro economic analysis that would convince viewers that Cable led rise in imported inflation could result in a drop in purchasing power and ultimately lead to reduced spending and a short-term slowdown, although the tail risk of recession has diminished considerably.

Philip Shaw, Chief Economist at Investec details the UK economic fundamentals with thrust on ‘Hard Brexit’, imported inflation and a possible slowdown. Shaw is joined by Mike Ingram, strategist at BGC Partners and Tip TV’s Zak Mir.

Shaw and Mir agree that consumer demand has held up well post Brexit and that could motivate corporate to pass on the rise in imported inflation to consumers. Hence, CPI is seen rising…eventually leading to a drop in the purchasing power. Still, there is no threat of Stagflation like scenario says Shaw.

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