Responding to the UK inflation figures for May 2024, released by the Office for National Statistics today (Wednesday 19 June 2024), Suren Thiru, Economics Director at ICAEW, said:
“The UK has reached a major milestone in its fight against an historic inflation surge, as weakening food costs helped pull the headline rate back to the Bank of England’s 2% target.
“Any relief over inflation returning to target should be tempered by the damaging after-effects this eyewatering cost of living shock has left behind, including materially higher price levels and weaker living standards.
“Inflation’s trajectory may get bumpier after the election with the higher National Living Wage and low labour supply likely to increase the upward pressure on prices, even though another fall in energy bills is coming in July.
“Despite this landmark fall in inflation, concerns over both underlying price pressures and changing policy in the run-up to a general election means a June interest rate cut is almost certainly off the table.”
ENDS
Notes to editors:
About ICAEW
Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 202,000 members and students around the world.
Founded in 1880, ICAEW has a long history of serving the public interest and we continue to work with governments, regulators and business leaders globally. And, as a world-leading improvement regulator, we supervise and monitor around 12,000 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.
We promote inclusivity, diversity and fairness and we give talented professionals the skills and values they need to build resilient businesses, economies and societies, while ensuring our planet’s resources are managed sustainably.
ICAEW is the first major professional body to be carbon neutral, demonstrating our commitment to tackle climate change and supporting UN Sustainable Development Goal 13.
ICAEW is a founding member of Chartered Accountants Worldwide (CAW), a global family that connects over 1.8m chartered accountants and students in more than 190 countries. Together, we support, develop and promote the role of chartered accountants as trusted business leaders, difference makers and advisers.
We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.
“Any relief over inflation returning to target should be tempered by the damaging after-effects this eyewatering cost of living shock has left behind, including materially higher price levels and weaker living standards.
“Inflation’s trajectory may get bumpier after the election with the higher National Living Wage and low labour supply likely to increase the upward pressure on prices, even though another fall in energy bills is coming in July.
“Despite this landmark fall in inflation, concerns over both underlying price pressures and changing policy in the run-up to a general election means a June interest rate cut is almost certainly off the table.”
ENDS
Notes to editors:
About ICAEW
Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 202,000 members and students around the world.
Founded in 1880, ICAEW has a long history of serving the public interest and we continue to work with governments, regulators and business leaders globally. And, as a world-leading improvement regulator, we supervise and monitor around 12,000 firms, holding them, and all ICAEW members and students, to the highest standards of professional competency and conduct.
We promote inclusivity, diversity and fairness and we give talented professionals the skills and values they need to build resilient businesses, economies and societies, while ensuring our planet’s resources are managed sustainably.
ICAEW is the first major professional body to be carbon neutral, demonstrating our commitment to tackle climate change and supporting UN Sustainable Development Goal 13.
ICAEW is a founding member of Chartered Accountants Worldwide (CAW), a global family that connects over 1.8m chartered accountants and students in more than 190 countries. Together, we support, develop and promote the role of chartered accountants as trusted business leaders, difference makers and advisers.
We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.