CBI responds to latest inflation statistics

Alpesh Paleja, CBI Lead Economist, said:

“We haven’t seen the end of rising inflation. Prices are set to rise at faster rates in the months ahead as the upcoming increase in Ofgem’s energy price cap compounds existing cost and supply chain pressures. With the resulting squeeze on household budgets expected to weigh on economic growth, it was encouraging to see the Government step in to moderate the impact of energy price rises on the most vulnerable.

“Looking beyond the near-term, it’s clear that the UK is caught in a low growth trap, and the only way to get out is a relentless focus on productivity. Measures like a 100% permanent investment deduction and a future-focused approach to regulation and skills are vital to help us avoid another lost decade of growth.

“Enhancing the economy’s growth potential is the only way to withstand future inflationary shocks and deliver a sustained boost to living standards.”