CBI responds to latest inflation data for December 2024

Martin Sartorius, Principal Economist, CBI, said:

“Inflation remained moderately above the Bank of England’s 2% target in December, reflecting the impact of ongoing price pressures such as strong wage growth. Looking ahead, we expect inflation will stay elevated this year, partly due to Autumn Budget measures contributing to higher prices.

“Persistent, above-target inflation supports our expectation that the Monetary Policy Committee will loosen policy at a gradual, quarterly pace throughout 2025. The next rate cut is still likely to come in February, which will bring some respite for businesses and households as they continue to face high borrowing costs.”