High interest rates not the answer to stubborn inflation, warns TUC

Commenting on CPI inflation slightly dipping to 3.4% in the year to May 2025, TUC General Secretary Paul Nowak said: 

“As the international picture gets more turbulent with every passing day, global uncertainty alongside increased energy and water costs are keeping prices high.  

“High interest rates just make cost pressures worse and are not the answer to stubborn inflation. Instead lower rates are needed to help ease the pressure on households, businesses and government borrowing.  

“The Bank of England must do the right thing and resume cutting interest rates this week.  

“This will put more money in people’s pockets, enhance businesses’ ability to grow, and make sure our public services can thrive.”   

ENDS 

Notes to editors: RPI rose by 4.5% 

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