Inflation not a cause for concern but Bank of England should cut rates to boost growth

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

“Today’s higher inflation figures were expected and pose no immediate cause for concern. The rise reflects anticipated price changes and aligns with the Bank of England’s forecasts, which predict a modest increase over the next year before easing in 2026.

“The real concern is the UK’s weaker-than-expected growth, now lagging behind the Bank’s own projections. High interest rates are stifling growth, as we’ve repeatedly warned, and this slowdown is driven by tight monetary policy—not the new government’s policies. The Bank of England must act decisively and cut rates tomorrow to get the UK economy back on track.”