CBI responds to latest inflation data for April 2026

Alpesh Paleja, CBI Deputy Chief Economist, said:

“However, the data does not yet fully capture the inflationary impact of developments in the Middle East. While fuel prices rose again through much of the month, higher global energy costs have yet to feed through more broadly into energy-intensive parts of the inflation basket, particularly food and household utility bills. As a result, inflation is likely to rise again in the months ahead, potentially peaking around the turn of the year. 

“That said, the backdrop this time is very different from the last inflation shock. Economic growth is lukewarm and the labour market is loosening, which should help to contain knock-on effects on wages and domestic prices. So, while inflation is likely to move higher again, it is expected to remain far below the double-digit rates seen in 2022 and 2023.”