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Pitiful drop in January highlights continued inflation challenge, ICAEW says

Author: ICAEW

Published: 15 Feb 2023

Suren Thiru, Economics Director at ICAEW, responds to the UK inflation figures for January 2023, released by the Office for National Statistics today (Wednesday 15 February 2023).

“Although inflation has peaked, the pitifully small drop in January suggests we have a way to go before this unprecedented surge in prices is under control."

“While inflation may jump in April when energy bills rise, as government support is scaled back, a weakening economy and favourable base effects should mean that the headline rate is materially lower by the end of 2023.

“Concerns that inflationary pressures have become embedded should ebb away, with weakening labour demand and diminishing cashflow likely to increasingly limit the extent to which firms can continue to lift wages.”

ENDS

Notes to editors:

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

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