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British Wages and Inflation take Centre Stage with Weakening Pound Kaiser Hoffman Capital

British purchasers, often seen as the key to a strong British economy, could experience a tighter pinch on their bottom lines.

�While inflation�s increase may have slowed last month, a decrease in salary growth means income is not meeting the growth in overall expenditure,� said Henry Holt at Kaiser Hoffman Capital.

According to data releases by Kaiser Hoffman Capital, salaries are all being used to uphold household expenditure this year, with signs of a noticeable slowdown on the horizon. Buyer spending was at its weakest in 3 years in the first quarter of 2017.

According to a statement by Mark Carney the robustness of household buying power has been one of the few reasons for economic growth in the second half of last year. He added that there have been some indications of a decrease in household spending. Retail sales figures have dropped in the past quarter and buyer confidence has been falling since the end of last year.

It seems that there is reason for concern. The weaker pound, causing increased inflation will continue to eat into the average consumers ability to spend.

The inflation increase is being driven by the British Currency�s deterioration in the wake of the Brexit referendum and U.K. buyers are already experiencing the aftershocks. A phase of food cost deflation has reached an end, and Pernod Ricard SA, whose products incorporate Martell cognac and Absolut vodk, is increasing costs in Britain in an attempt to counterbalance the devaluation.

Experts still predict that U.K. GDP will increase by 1.8 percent this year, equivalent to growth experienced in 2016 with a decided shift in the composition of growth.

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