The resilience of the UK economy may prompt the Bank of England to be more reluctant about cutting interest rates, said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
She said policymakers may choose to hold off until inflation begins heading back to the Bank of England’s 2% target.
Last week, the Bank raised its inflation forecasts and now expects the pace of price rises to peak at 4% later this year before receding to the target in 2027.
But Ruth Gregory, deputy chief UK economist at Capital Economics, said it was doubtful the country “will maintain this pace of growth” between July and September.
“The weak global economy will remain a drag on UK growth for a while yet,” she said.
“The full drag on business investment from April’s tax rises has yet to be felt. And the ongoing speculation about further tax rises in the Autumn Budget will probably keep consumers in a cautious mood.”
Earlier this month, the National Institute of Economic and Social Research think tank said taxes would have to rise in the autumn if Reeves wants to meet her self-imposed borrowing rules and avoid missing a target the government has set itself by £41.2bn.
Figures from the ONS showed that business investment fell sharply, down 4%, compared with growth of 3.9% in the first three months of the year. Household spending also dipped.