WIREDGOV

CBI has recently (25 March 2026) responded to latest inflation data for February 2026.

Martin Sartorius, Lead Economist, CBI, recently said:

“Inflation remained elevated in February, broadly consistent with the Bank of England’s projections. However, these data are already old news, as the recent spike in global energy prices due to the Iran conflict means that we expect to see renewed inflationary pressures in the near-term. This could potentially delay the return to 2% inflation until next year, rather than this summer.

“The extent to which inflation will pick up in the coming months will depend on the duration and intensity of the Iran conflict. Households have already seen a rise in fuel pump prices, but a more protracted conflict would result in higher energy bills from July. Food and other goods prices could also see upward pressure due to recent increases in some global commodities prices and disruption in supply chains.

“At this stage, the uncertainty surrounding the extent of the potential inflationary impact of the Iran conflict means that the Bank of England’s Monetary Policy Committee will likely keep rates on hold next month. The bar for hiking rates is relatively high, given weak domestic activity and a cooling labour market, but cannot be ruled out if the situation in the Middle East deteriorates significantly further.”