Comment from credit and risk specialist Dun & Bradstreet
“News this morning that the UK’s inflation rate has risen to its highest point in 22 months supports our view that consumer prices are on an upward trajectory. Although the increase in September was not predominantly a consequence of the weak pound, the sterling’s depreciation against the dollar, euro and yen will be increasingly felt by British companies - and eventually consumers - from the start of 2017 onwards.
“Theresa May has confirmed that Article 50 will be invoked in the first quarter of 2017, and further downward pressure on the pound lies ahead, which could exacerbate problems for British importers. While this will offset some of Brexit’s negative impact on economic growth (as a weaker pound boosts exports and weighs on imports), Dun & Bradstreet anticipates reduced opportunities for doing business with UK-based companies - at least with those that source from abroad and sell to the domestic market. Against this backdrop, we recommend that companies doing business with or in the UK ensure that the necessary credit and risk management solutions are in place. It’s now more vital than ever to assess both current and new suppliers, corporate partners, and consumer trends.”
Markus Kuger, Senior Economist, Dun & Bradstreet