CBI responds to latest inflation data for October 2024

Alpesh Paleja, Interim Deputy Chief Economist, CBI, said: 

“Inflation was always expected to pick up in October, but the increase was bigger than the Bank of England had expected. We’ll continue to see bumpier inflation over the coming months, as more base effects play out in the data. But the big picture should still remain one of headline inflation being much lower than this time a couple of years ago.

“Despite the upside surprise in today’s data, the Bank is still likely to continue cutting rates at a gradual pace going forward. However, renewed price pressures from the fiscal loosening in October’s Budget means that the CPI rate is likely to stay above the 2% target for longer than previously expected. Coupled with continued strength in services price inflation and wage growth, this all but rules out the prospect of a faster pace of rate cuts in the year ahead.”