Reacting to today’s monthly inflation figures Carsten Jung, senior economist at IPPR, said:
“Even though inflation inched up slightly, inflation is coming down more quickly than many predicted just a month ago. This is largely due to global supply chains recovering and energy costs falling.
“We have long been arguing that there was too little focus on this and too much attention on wage earners. As a result, the Bank of England tightened the screws too much. Similar to the US central bank, we will likely see a slow reversal of its policy stance towards cutting rates sooner this year.
“But even as prices are rising less quickly, we need to do more to address the fallout from past price jumps. The cost of food remains high and benefits are not sufficiently keeping up with the higher cost of living. Businesses should be urged to do more to actively bring prices and profits down.”