CBI responds to latest inflation data for June 2025
Martin Sartorius, principal economist, CBI, said: “June’s stronger-than-expected inflation print will raise concerns that recent price pressures – driven by higher household energy prices and the passthrough of increased employment costs – could potentially re-entrench inflation in the economy.
“While we still expect the Bank of England’s Monetary Policy Committee to continue gradually cutting rates, today’s upside inflation surprise means its August decision will be finely balanced. Underlying price pressures show signs of easing as the labour market cools, which should support a rate cut. However, some members of the MPC will be wary of loosening too quickly and, consequently, risk inflation remaining above target for longer.”