IoD press release  Inflation eases temporarily but risks to the outlook build

“Inflation surprised on the downside in April, reflecting lower household energy bills following the Ofgem price cap reduction and Budget measures, alongside smaller increases in VED and water charges than a year ago, and some Easter timing effects. Sadly, this improvement is set to be short lived as the impact from the Middle East conflict continues to build, with motor fuel prices rising at the fastest pace since the Ukraine war.

“Inflation is set to remain elevated, as higher energy and commodity prices spread across supply chains and household energy bills rise again. As attention intensifies on the cost of living, it is important that policy action is targeted in the right place. With business margins under persistent pressure, price rises reflect the reality of rising costs for business. Addressing the drivers of those costs — particularly regulation, taxation and energy — will be key to limiting further price rises.”