Box sets » Conditioning assumptions » Exchange rates

Impact of post-referendum rise in inflation on the public
One unforeseen economic development affecting our March 2016 forecast was the upside surprise in inflation in 2017-18 as a result of the fall in the exchange rate. This box described the effect of that surprise on receipts, spending and borrowing.

Economy categories:
Inflation    Exchange rates   

Fiscal categories:
Public spending    Receipts    Public sector net borrowing