CBI responds to latest inflation figures

Alpesh Paleja, CBI Lead Economist, said:

"The absence of movement in CPI inflation underscores the persistent nature of current cost and price pressures, with households and businesses left feeling the pinch. In particular, the ongoing strength in food price inflation means that many will have to keep tightening their belts for some time.

"Although headline inflation is expected to keep falling over the course of the year, it will still stand at double the Bank of England’s target by December – making 2023 another difficult year for many households.

"The latest data also shows signs of stubbornness in more domestically focused price pressures, most notably in the recent strength of private sector wage growth. As a result, another interest rate rise from the Bank of England looks like a done deal, with the prospect of at least one further rise in August to fully bring inflation under control."