CBI responds to latest inflation data for July 2024

Martin Sartorius, Principal Economist, CBI, said:

“Inflation undershooting the Bank of England’s expectations will be seen a positive sign that price pressures are continuing to normalise for households and businesses.

“Today’s data will give the Bank’s Monetary Policy Committee some measure of confidence that domestic price pressures are less likely to derail a sustainable return to the 2% target. A second consecutive cut in interest rates next month is not a certainty, however. This is because the MPC will still be mindful of upside risks to the inflation outlook, especially as pay growth remains stubbornly high.”