CBI responds to inflation figures for June 2024

Martin Sartorius, Principal Economist, CBI, said:

“The fact that inflation is stable at the Bank of England’s target will be welcome news for many households as we start to see things return to normal after period of high price growth. However, it’s worth noting that many have yet to feel the benefit of lower inflation due to the high level of prices, particularly for food and energy bills.

“Today’s data paves the way for an interest rate cut next month, which would begin to provide some relief for firms and households that are struggling with high borrowing costs.

“Going forward, the Bank’s Monetary Policy Committee will be mindful of potential upside risks to inflation in the near-term as the domestic growth outlook improves. They are also likely to move carefully as they assess the impact of the first rate cut in four years.”