Inflation rate ‘shockingly high’

Commenting on the news that CPI inflation rose from 7% to 9% in April, Kitty Ussher, Chief Economist at the Institute of Directors, said:

“While this high rate was to be expected given the rise in the retail energy price cap, it is nevertheless shockingly high.

“Business leaders tell us that the UK macroeconomy is now their number one negative issue, driven by worries over inflation. As a result, firms are becoming more reluctant to invest, storing up problems for the economy in future.

“If the Chancellor intends to intervene in advance of the further price cap rise in the autumn, he should make that clear, to start bringing expectations of future inflation back down.”