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ICAEW says slowing inflation not easing the cost of living crisis

Author: ICAEW

Published: 18 Jan 2023

Suren Thiru, Economies Director at ICAEW, responds to the UK inflation figures for December 2022, released by the Office for National Statistics today (Wednesday 18 January 2023).

“Although inflation is on a downward trajectory, it remains far too high to provide any relief to struggling households as the cost of living continues to significantly outpace wage growth.  

“The Prime Minister should achieve his pledge to halve inflation this year, but this will owe more to the downward pressure on prices from a flatlining economy and falling energy costs, than from any government action.

“While interest rates are expected to rise in February, with inflation slowing, this monetary tightening cycle may end by the summer. If the economy slips into recession, then policymakers may be forced into cutting rates by the end of the year.”


Notes to editors:

Contact: ICAEW media office media.office@icaew.com, tom.mackintosh@icaew.com or 07866 853 841