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UK growth engine seen to slow in 2016

Pick-up in inflation, interest rate increase, fiscal tightening will hurt consumer spending

THE SHOPPING HAS BEEN GOOD: Annual retail sales growth has exceeded 5 per cent in the past three months. Consumers have benefited from a supermarket price war, which has seen the UK's biggest chains battle for sales.


THE strongest pillar of the UK economy may start to wobble in 2016. Having boosted growth for nine straight quarters, consumer spending could be up against restraints next year that will curb its momentum. For now, the shopping party continues, with data on Thursday showing annual