If the rise in petrol prices in the producer-price data is reflected in the CPI data, there is a risk the inflation rate could be 2.2 percent. |
The Bank of England will be concerned higher interest rates elsewhere will put pressure on the pound. |
The margins story is better than expected. Things are getting better for manufacturers. |
We are seeing a gentle recovery going on in retail sales at this stage, which I expect to get stronger going forward. The pickup in the housing market should have a general wealth effect, making consumers happier to go out and spend. |
We might not see retail sales numbers that are that strong yet, but they will pick up toward the end of the year. |