Responding to the latest CPI figures released today David Kern, economic adviser to the British Chambers of Commerce, said:
“Today’s inflation figures were slightly worse than expected and will therefore heighten the risk of higher interest rates. Annual CPI inflation fell from 2.5 per cent in May to 2.4 per cent in June, against a forecast of a larger fall to 2.3 per cent.
“Annual RPI inflation went up slightly against a market forecast for a slight fall. While we accept that these figures would increase pressure for an increase in interest rates to 6 per cent next month, we continue to urge the MPC to adopt a cautious line. It is important to allow previous interest rate increases to work before tightening further.”