CBI responds to latest inflation figures

Martin Sartorius, CBI Principal Economist, said:

"Inflation fell more sharply than expected in June, which will enable Bank of England policymakers to breathe a sigh of relief following last month’s upside surprise".

"However, CBI survey data continue to point to persistence in domestically-driven price pressures, particularly in the services sector, and many businesses report that the labour market remains very tight".

"It’s still likely that the Bank will raise rates higher in their next meeting and keep a tighter policy stance going forward to ensure inflation continues to head sustainably back towards its target".