WIREDGOV

CBI yesterday responded to latest CPI inflation data.

Alpesh Paleja, CBI Lead Economist, said:

"No movement in inflation over January is not entirely a surprise, due to base effects and a small rise in Ofgem’s energy price cap coming into effect. We may see a few more bumps in the road over the coming months, but the broad direction of travel with inflation is encouraging, having fallen considerably from its double-digit highs 15 months ago.

"The Bank of England seems to share this view, though will want to see more definitive signs that domestic price pressures are continuing to soften. But with monetary policy now believed to be doing the trick, it’s increasingly a case of “when” rather than “if” interest rates will be cut.”