“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.”
Notes to editors:
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