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

“Today’s unchanged CPI inflation figures, although widely expected, must be disappointing for the Monetary Policy Committee. However, evidence still firmly suggests that UK inflation will fall quite sharply over the next 18 months.    

“Inflationary expectations appear under control, and in the foreseeable future the threat of a major setback to growth remains much bigger than that of a surge in inflation. Against this background, we continue to urge the MPC to increase quantitative easing by £50bn before the end of the year. We believe that a boost to QE will reduce any dangers facing the economy when VAT is increased and the deficit-cutting plan is implemented more forcefully.”