CBI responds to latest inflation figures

Alpesh Paleja, CBI Lead Economist, said:

“Despite the higher energy price cap pushing inflation to another high, there are signs that we are reaching its peak. Global price pressures appear to be easing, and forecasts predict that inflation could fall from double digits to high single digits over the course of 2023. Next year’s outlook, however, is clouded by uncertainties: including the extent to which the labour market will loosen, and the status of domestic energy bills support beyond April 2023.

“High inflation, alongside a weaker economic outlook, will make for some tough choices for the Chancellor during tomorrow’s Autumn Statement. While we all accept that the Chancellor needs to close the fiscal black hole and reinforce macroeconomic stability, he must not forget to implement more pro-growth policies, if we’re to avoid a decade of lacklustre growth.”