Dear Jeremy On 20 March 2024, the Office for National Statistics (ONS) published data showing that twelve-month inflation in the Consumer Prices Index (CPI) was 3.4% in February. This letter sets out the outlook for inflation and the policy action the Monetary Policy Committee (MPC) is taking to return inflation to the 2% target, along with other considerations required by the MPC’s remit when inflation moves away from the 2% target by more than 1 percentage point. Inflation has continued to fall as expected. Cost pressures have eased, and the restrictive stance of monetary policy is working to bring inflation down. ... (full story)

Dear Andrew, Thank you for your letter of 21 March on behalf of the Monetary Policy Committee (MPC) regarding February’s Consumer Prices Index (CPI) figure. The twelve-month measure of CPI inflation was 3.4% in February, which triggered an exchange of open letters under the terms of the MPC remit. I welcome that CPI inflation has fallen by a further 1.2 percentage points since your last letter in December, from 4.6% in October to 3.4% in February. CPI inflation has more than halved relative to its peak, having fallen from 11.1% in October 2022. The plan is working to bring inflation down, but we must not be ... (full story)