Phoebus reaction to latest inflation figures

22 July 2026

Richard Pike, Sales and Marketing Director at Phoebus:

“After remaining unchanged over the past two months, the latest data suggests inflationary pressures may be starting to ease, helped by lower fuel and food costs and a moderation in some services prices.

“The figures will be welcomed by Andy Burnham and his new government as they look to create headroom for new initiatives and investment, particularly as recent borrowing data has shown some improvement.

“That said, the outlook remains uncertain. Ongoing geopolitical tensions, particularly in the Middle East, continue to pose risks to energy markets and could put renewed pressure on prices in the months ahead.

“Today’s figures are likely to reinforce expectations that the Bank of England will leave rates unchanged next week, although policymakers will want to see sustained evidence that inflation is moving back towards the 2% target before considering any further policy easing. If that downward trend continues, the prospect of a base rate cut before the end of the year becomes increasingly realistic.”