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19th June 2024

Inflation meets 2% target

The ONS has announced that CPI inflation has fallen to 2%, meeting the Bank of England’s target figure.

Paul Butterworth, CEO at Chambers Wales South East, South West and Mid, said:

“Businesses in Wales will welcome today’s news that CPI inflation has finally met the Bank of England’s 2% target and is a sign that the UK is exiting the inflation crisis which began in late 2020. Businesses have consistently told us, in our Quarterly Economic Surveys, that inflation is a factor that causes them the most concern in planning their costs.

“Whilst the Bank of England may not make the immediate decision to cut interest rates tomorrow, today’s data provides additional weight for an interest rate cut in the near future.”

David Bharier, Head of Research at the British Chambers of Commerce, said: 

“Today’s data showing CPI easing to the Bank of England’s 2% target, is a further sign that the UK is exiting the inflation crisis which began in late 2020. It provides additional weight for an interest rate cut in the coming months, something which will be welcomed by firms of all shapes and sizes.

“Our research has shown that a steadily declining number of businesses are concerned about inflation, from a record peak of 84% in mid 2022. This is positive news, but prices are not falling, just rising more slowly, and the economic outlook remains challenging. Our latest forecast expects inflation to nudge back up again to 2.3% by the end of the year.

“To restore economic growth and stability, policymakers should focus on the long-term. Our election manifesto outlines a 5-point plan for immediate action by the new government. We need a green industrial strategy, better skills planning, business rate reform, improved relations with the EU, and support for SMEs to embrace AI.

“Our manifesto has been welcomed by all the main parties and gives a clear blueprint for action after July 4th.”

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