Inflation is expected to fall to around the five per cent mark by the end of 2023, a leading expert has told businesses in Coventry and Warwickshire.
Glynn Jones, the Bank of England’s deputy agent for the West Midlands, met firms in the region to give them an overview of the economy from the Bank’s perspective but also to hear from companies from a range of sectors.
Jones warned, however, that getting down to the two per cent inflation target would not be easy.
He said: “There were many factors in the rise in inflation in the UK – we had the pandemic, the war in Ukraine and a huge labour shock, which have all compounded one another.
“Inflation has dropped back to 6.7 per cent and our forecasts are that it will reach around the five per cent mark by the turn of the year.
“Goods inflation and food inflation has fallen but we’re now seeing fuel prices creep back up.
“The Bank has increased base rates as a tool to help bring down inflation but there are still risks to the outlook and the Bank will not hesitate to take further action should it be required to ensure that we bring inflation back to our two per cent target.
“Economic growth has been subdued but has so far remained positive. Consumption – an important driver of growth in the UK – has remained resilient but there is little to suggest that growth will not remain quite sluggish for the foreseeable future.”
Tom Mongan, president of the Coventry and Warwickshire Chamber of Commerce, said: “We were grateful to Glynn Jones for offering an insight into the Bank of England’s currenting thinking when it comes to the economy.
“The firms around the table and across Coventry and Warwickshire all have their own story to tell and it’s clear that there is some way to go before the economy is on the full road to recovery.
“To that end, our Annual Conference on November 10 will be an opportunity for firms across the region to come together and hear from a wide range of experts and look at the opportunities and challenges ahead.”
Pictured (left to right): Carol Thomas (Coventry College), Tom Mongan (Chamber), Roger Scott (Lloyds Banking Group), Glynn Jones (Bank of England), Olivia Parrish (Leap People Solutions)