CBI responds to latest monthly inflation figures

Anna Leach, CBI Deputy Chief Economist, said: 

“Inflation hit another multi-decade high in June. The labour market is still tight, global price pressures strong and another rise in Ofgem’s energy price cap is in the offing. As a result, inflation is likely to stay high for the rest of this year, severely eating into strained household incomes. 

“This data underscores the need to give people more control over their energy bills: through speeding up planning decisions for electricity infrastructure and creating a national effort to help households better insulate their homes.  

“But to build resilience to price shocks over the longer-term, the government needs to focus on boosting the economy’s supply potential. Incentivising investment through a permanent successor to the super deduction and supporting the development of green infrastructure are crucial first steps.”