Falling inflation must be followed by falling interest rates, says IPPR

Reacting to today’s inflation news Carsten Jung, senior economist at IPPR, said:

"Inflation temporarily falling to target is good news, it should prompt the Bank of England to start easing financial pressure by bringing down interest rates this week. Falling inflation expectations by households and a cooling labour market suggest that the current inflation fight could be in its last round.

“To further ease inflationary pressures and grow the economy, whoever wins the next election must urgently address the dire labour market situation, where a record number of people have left the labour force, often due to illness. Moreover, only huge investments in the clean energy transition can shield us from future inflation shocks from international oil and gas markets.”