CBI responds to latest inflation figures

Alpesh Paleja, CBI Lead Economist, said:

"While inflation rose in February, the outlook for the months ahead is looking more benign, thanks to lower wholesale energy prices. But while we expect inflation to fall back over this year, the firmness in domestic price pressures is something that the Bank of England will be keeping a close eye on.

"And despite further falls over the coming months, this year will still be a high-inflation environment for both households and businesses. Extending the Energy Price Guarantee in the Budget was a welcome move to curb some of the short-term impact on living standards. But building resilience to future energy price shocks is vital to weathering price pressures in the future. The Government’s commitment to carbon capture and nuclear energy is a good first step, but all eyes will now be on further announcements on their green plans. With the US and Europe raising their game on green growth, moving further and faster in the months ahead is key."