BDO’s output index of gross domestic product reached its highest level in a decade, up from 100.8 in January this year to 101.4 last month, which suggests that the consumer price index could rise above the Bank’s inflation target of 2%.
One analyst said the BDO survey suggested that price pressures were building significantly – but it is in sharp contrast to official figures, which show UK inflation down to just 1.1% in March.
‘The chancellor shouldn’t start celebrating yet,’ said Peter Hemington, partner at BDO Stoy Hayward.
‘Consumer spending is still contributing heavily to the boom but this will change as debt burdens increase with higher interest rates.’
The monetary policy committee will decide on Thursday whether to push interest rates above 4%.
Mark McMullen joins the private client services team from Smith & Williamson
Merger between Clear & Lane Chartered Accountants and Magma Chartered Accountants was finalised on 3 February
BDO has taken its new partner intake to 23 during the first half of its financial year, including the appointment of five partners in five weeks
The firm reports 7.6% global fee income growth for the year ending 31 December 2016