Our response to the latest inflation figures

Alpesh Paleja, CBI Lead Economist, said:

“Inflation figures continue to paint a worrying picture for consumers and businesses alike, and price pressures are set to build further. With a hefty climb in Ofgem’s energy price cap expected in October, CPI inflation will comfortably rise into double-digits over the months ahead.

“The cost-of-living crisis is now very real for both households and businesses, so there needs to be a concrete way forward to support vulnerable groups with higher energy bills.

“But we also need to think about the longer term: incentivising investment in the energy transition is key to reducing our exposure to global price shocks, and bolstering the UK’s energy security. Taking overdue actions to shore up potential growth – for example, adding immediate flexibility to the Apprenticeship Levy for one year – will also build resilience to price pressures over the long term.”