CBI responds to latest inflation figures

Alpesh Paleja, CBI Lead Economist, said:

“The fall in inflation last month supports our view that we’ve likely passed its peak. We expect inflation to continue falling gradually over the year ahead, as global price pressures ease and an economic downturn takes some of the heat out of price setting.

“Despite this, costs and price pressures will likely remain very high in the near-term, putting continued pressure on vulnerable households and businesses.

“Government support has been considerable already, but with the UK set to fall into a recession, targeted measures must be extended to those that need them most. In particular, businesses need clarity on a targeted extension to the Energy Bill Relief Scheme, which should be aimed at supporting heavy energy users.”