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Martin Sartorius, Principal Economist, CBI responds to September 2024 inflation figures

“Inflation dropping noticeably below the Bank of England’s target in September will come as good news to households. While headline inflation is still set to tick up in the latter part of this year, these latest data will reassure members of the Monetary Policy Committee that price pressures are easing.  

“Below-target inflation in September makes it increasingly likely that the MPC will choose to cut rates in November. However, some members of the MPC will remain wary of the upside risk that sticky services inflation poses to the outlook. Therefore, we still expect to see a gradual path for interest rate cuts in the near term.”