IoD responds to latest inflation statistics

Responding to official inflation figures, showing that the Consumer Price Index (CPI) rose to 2.1% in April, Tej Parikh, Senior Economist at the Institute of Directors said:

“After a few months of low and stable inflation, the pickup in price growth is likely to frustrate households somewhat.

“A few specific and temporary factors pushed prices up in April, including the hike in the energy price cap and the Easter holiday period. With uncertainty already weighing in on confidence on the high street, consumers will be hoping prices fall back and wages rise faster to give them more breathing space.

“The spike in inflation is unlikely to trouble the Bank of England, which remains in a holding pattern over further interest rates hikes as long as Brexit uncertainty continues.”