UK inflation has peaked, says CBI

The CBI today commented on the latest official inflation figures, which showed that the Consumer Prices Index was 3.4% higher in May compared with a year ago.

Ian McCafferty, CBI chief economic adviser, said: “UK inflation has started to come down in line with our latest economic forecast and we think that the peak is likely to have passed.

“The surprisingly high inflation figures over recent months prompted some concern about the persistence of underlying inflationary pressure, and household perceptions of inflation have picked up in response.

“However, core measures of inflation all fell back in May, and inflation should come down further in the months ahead and fall below the 2% target by this time next year.”