IPPR responds to inflation figure

Responding to the ONS CPI figures for February Dr George Dibb, head of the Centre for Economic Justice at IPPR, said:

“February’s surprise increase in inflation will raise more concerns for households whose budgets are already stretched to their limits. With some of the biggest contributions to rising prices coming from essentials like food, drinks and clothing most households will find that their pay packet doesn’t stretch as far.

“From an economics perspective, all eyes now turn to tomorrow’s announcement from the Bank of England's interest rate setters. Rising ‘core’ inflation will raise concerns amongst central bankers that inflation is increasingly embedded. However, it's important to note that all the major forecasters are expecting a significant drop in inflation - even deflation - later in the year.”