CBI responds to latest inflation figures

Alpesh Paleja, CBI Lead Economist, said:

"Today’s inflation figures show it isn’t 'job done', despite coming after last month’s sharper-than-expected fall. Indeed, risks to the inflation outlook remain very much to the upside. In the near-term, Ofgem's lifting of the energy price cap in January will likely lead to a small bump in the CPI rate. And there are now renewed risks from tensions in the Middle East, through their potential impact on supply chains and commodity prices.

"Notwithstanding signs of a moderation in wage growth, the Bank of England will also be watching for more persistent cooling of domestic price pressures, in order to be more reassured about the inflation outlook. So, while all eyes are focusing on the timing of cuts to interest rates, it may still prove soon to start reducing the cost of borrowing."