CPI inflation up 0.1% to 4%

CPI inflation up 0.1% to 4%

17 Jan 2024

Danny Vassiliades, Partner at XPS Pensions Group, commented: “This time last year, CPI inflation stood at 10.5% and the Bank of England was in the middle of 14 consecutive interest rate rises in a bid to control it. Whilst CPI remains above the Bank’s 2% target rate, today’s announcement shows what a difference a year can make.

While we are watching the unfolding situation in the Red Sea and considering potential inflationary impacts of this carefully, some forecasts are suggesting that CPI inflation could hit the Bank’s 2% target by mid-2024. In this scenario, many pension increase limits will not apply, to the benefit of pension scheme members.”