Easing inflation further supports rate-cut calls

West & North Yorkshire Chamber welcomes the news that inflation has further fallen to 2.3 per cent. 

Mark Casci, head of policy, said: “Businesses will be comforted that inflation levels are nearing the two per cent target. “The CPI data today will heighten expectations that interest rates will be cut in the coming weeks. 

“However, employers will be under no illusions as to the economic reality. Prices are not falling, only growing at a slower rate, and it is up to the Government to ensure a stable and certain platform for businesses to invest and grow.”

Reacting to this morning’s inflation data, David Bharier, Head of Research at the British Chambers of Commerce, said:  

“Today’s data showing CPI inflation is at 2.3% is positive news that should help settle nerves and increase the likelihood of an interest rate cut in the coming months.  

“Other recent data would support a rate cut, with the economy growing by a larger than expected 0.6% in the first quarter and signs the labour market is cooling. However, this has been a four-year inflation crisis, and prices are not falling, only going up at a slower rate. 

“Uncertainty will persist with global conflicts and trade wars threatening supply chains. Real wage costs also continue to grow – our most recent business survey found almost half of firms expect their prices to rise over the next three months, with labour costs cited as the main driver. 

 “While the outlook may have brightened, the skies aren’t yet fully clear. UK firms need to see a long-term vision for the UK economy from politicians, including action on making trade easier, especially with the EU.”