WIREDGOV

The CBI commented on the latest Consumer Price Index measure of inflation, which showed a fall from 1.5% in August to 1.2% in September.

Rain Newton-Smith, CBI Director of Economics, said:

"Inflation has generally been falling since mid-2013, due to lower global commodity prices and the rise in Sterling pushing down on import costs. At home, heavy discounting among supermarkets is also likely to have exerted downward pressure.　

"We expect inflation to remain below the Bank of England’s 2% target out to next year, with both global and domestic inflationary pressures remaining subdued.

"Our forecast is for a first interest rate rise in spring next year, as growth maintains solid momentum. However, this latest fall in inflation is likely to intensify the debate around timing further."