IoD press release  Better inflation outturn than feared offers relief to Bank of England

“Lower than expected inflation will bring welcome relief to the Monetary Policy Committee, who have been split on the outlook. We should now be passed the peak of this inflationary cycle for consumers. Weaker energy price inflation and the steady slowdown in wage growth – a key driver of services inflation – should help sustain a further easing in price pressures. But food price inflation is set to carry on rising, which bears with it risks to the outlook.

“The MPC seems likely to hold fire on rates in their next meeting, which falls ahead of the Budget. Price signals remain mixed, with higher price expectations counterbalanced by a weak labour market and subdued confidence amongst businesses and consumers. Given the impact that last year’s Budget had on inflation and confidence – especially through higher employer costs – any rate move is likely to be parked for now.”