The 7 scariest challenges facing the British economy, according to analysts

What's going on: Inflation has jumped to its highest level since 2013 in the year following the Brexit vote as the pound plunged in value against the dollar. While it saw a surprise fall from 2.9% to 2.6% in June, the level of price growth for everyday goods and services remains worryingly high, and well above the Bank of England's 2% target.

Their [BNP Paribas AM's] view: "Inflation is probably the biggest challenge currently facing the UK economy. The depreciation of sterling is raising import prices and therefore diminishing consumer purchasing power, while at the same time wage growth is slowing down. This weakness in consumer demand, combined with the anticipated slowdown in business investment during the Brexit negotiation period, means that it will be difficult for the UK economy to maintain the level of growth it experienced during 2016."