Commenting on the March inflation figures published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“RPI is in negative territory and fell by more than expected. Deflationary pressures could make the recession worse in the short-term, despite quantitative easing and the huge budget deficit posing inflationary pressures over the medium-term.

“The Chancellor must address both these conflicting risks in his Budget. He must support business and administer targeted fiscal stimulus for the year ahead. But, he also has to present a credible medium-term plan for restoring the public finances back to health.”