Inflation indicators heading in the right direction says IPPR

Reacting to today’s monthly inflation figures Dr George Dibb, associate director for economic policy at IPPR, said:

“Today’s news that inflation is falling is welcome, but it doesn’t mean prices are falling - just that they are rising less fast. The details of where prices are still rising the fastest also show we are entering a new phase of the inflationary period with food prices and restaurants making the largest downward contribution.

“The Bank of England’s high interest rates continue to cause pain in the economy. Indicators are heading in the right direction, with goods inflation, services inflation and ‘core’ inflation all falling this month, so we want to see interest rates come down. Alongside this, government must also make a shift away from the tax-cuts-at-all-costs strategy towards the much-needed prioritisation of investment into public services.”