Monetary Policy

Falling inflation set to raise real interest rates



IEA Research quoted in IG

In the Media

Len Shackleton quoted by The Scotsman

Len Shackleton quoted by Business Leader

IEA Editorial and Research Fellow Len Shackleton has been quoted by Business Leader in their piece exploring whether the latest drop in inflation is a good sign for the economy.

Business Leader quoted:

“If last month’s 8.7 percent annual increase in the CPI was unexpectedly high, this month’s 7.9 percent is a shade lower than expected. This is mirrored in other indicators such as CPIH and core CPI.

“Rishi Sunak’s pledge to halve inflation by the end of the year may still be optimistic, but at least there are no grounds for the Bank of England to raise interest rates further. Nor are there any grounds for panic measures to hold down prices artificially, such as Grant Shapps’ silly initiative to curb supermarket petrol prices.”

You can read the full article here.