Noticias de la Cámara

Easing Inflation Further Supports Rate Cut Calls

22/05/2024 Proyectosnuevos s2024 05 22T094706.893

Reacting to this morning’s inflation data, David Bharier, Head of Research at the British Chambers of Commerce, said:  

“Today’s data showing CPI inflation is at 2.3% is positive news that should help settle nerves and increase the likelihood of an interest rate cut in the coming months.  

“Other recent data would support a rate cut, with the economy growing by a larger than expected 0.6% in the first quarter and signs the labour market is cooling. However, this has been a four-year inflation crisis, and prices are not falling, only going up at a slower rate.

“Uncertainty will persist with global conflicts and trade wars threatening supply chains. Real wage costs also continue to grow - our most recent business survey found almost half of firms expect their prices to rise over the next three months, with labour costs cited as the main driver. 

“While the outlook may have brightened, the skies aren’t yet fully clear. UK firms need to see a long-term vision for the UK economy from politicians, including action on making trade easier, especially with the EU.”


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