Inflation reaction: Bank of England now need to cut interest rates, says IPPR

From: Think Tanks
Published: Wed Jul 17 2024


Dr George Dibb, associate director for economic policy at IPPR reacts to today's inflation news

"Today's data confirms that inflation is well on its way towards normalisation. Some inflation drivers, such as core inflation, are still elevated, but the Bank of England's policy stance remains too tight. Interest rates have been too high for too long and need to come down to not hamper growth.

“The new government wants to boost the economy and to prevent inflationary pressures. Only investments in the clean energy transition can shield us from future inflation shocks in international oil and gas markets. Additionally, a record number of people have left the labour force, often due to illness, harming our economic potential. Addressing NHS failures will be critical to solving our dire labour market situation.”

Consumer price inflation, UK: June 2024

Company: Think Tanks

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