CBI responds to latest CPI inflation figures

Alpesh Paleja, CBI Lead Economist, said: 

"Inflation was always likely to fall in April, as the comparison was against a big rise in Ofgem’s energy price cap this time last year. Inflation should continue to fall in the months ahead, thanks to base effects unwinding further and a more benign outlook for global energy prices. But it’ll take a while for people to feel this in their pockets, particularly with food price inflation and generalised inflationary pressures still strong.

"Easing price pressures means that the Bank of England is probably close to the peak in its rate tightening cycle. But the stickiness in domestic price pressures, such as wage growth, is something that it is keeping a close eye on. Should this persist, especially against the backdrop of resilience in economic growth, it might prove too early to call time on rate rises just yet."