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Sticky May inflation means damaging rate rise inevitable, ICAEW says

Author: ICAEW

Published: 21 Jun 2023

Suren Thiru, Economics Director at ICAEW, responded to the UK inflation figures for May 2023, released by the Office for National Statistics today (Wednesday 21 June 2023):

“May’s hotter than expected outturn suggests that the fight against inflation is far from over, particularly given sky-high food bills and rising core inflation.

“The UK’s inflation trajectory over the summer is largely locked in, with lower gas and electricity bills from July set to drive notable falls in the headline rate. 

“While core inflation is proving troublesome, the painful squeeze on consumer spending from soaring mortgage costs and higher taxes should soon put it on a downward path.

“Although another interest rate rise on Thursday looks inescapable, further tightening will do little to address current inflationary pressures and instead risks deepening the financial pain facing people and businesses.”


Notes to editors:

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