CBI responds to latest inflation data for September

Martin Sartorius, Principal Economist, CBI, said:

“Inflation came in lower than expected in September, bringing some relief to hard-pressed households, though it remains well above the Bank of England’s 2% target. Price pressures should begin to slowly ease in the coming months, but we are unlikely to see a more substantial downshift in inflation until the first half of next year.

“Today’s downside surprise raises the possibility that a rate cut by the Bank of England’s Monetary Policy Committee could be back on the table in November. While some MPC members may prefer to keep rates on hold given the recent uptick in inflation expectations, September’s softer reading could give the broader Committee greater confidence to reduce rates without risking further persistence in price pressures.”