CBI responds to July 2026 inflation data

Martin Sartorius, Lead Economist, CBI, said:

“Inflation started to pick up again in July, fuelled by higher household energy bills. We expect that inflation will gradually accelerate in the coming months, as the ongoing Iran conflict continues to feed through to prices.

“The rise in inflation, which was broadly in line with the Bank of England’s expectations, means that the Monetary Policy Committee remains on track to keep rates on hold at its next meeting. Although the outlook for energy prices remains volatile and uncertain, the loose labour market, soft underlying activity, and tighter financial conditions should continue to limit the extent to which the Iran conflict feeds through to domestic price pressures.”