- Annual CPI inflation in October 2014 was 1.3%, up from 1.2% in September
- Goods price inflation in October 2014 was 0.3%, while services inflation was 2.5%
- Food and motor fuel prices, which have historically contributed to the rise in annual inflation, are putting downward pressure on inflation
Commenting on the CPI inflation figures for October 2014, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“Although inflation edged up slightly in October, the impact of low oil prices will have a noticeable impact in coming months, causing inflation to drop. We expect inflation to fluctuate around 1.0% until late 2015, before rising towards 2.0% in 2016.
“Businesses will be pleased by last week’s inflation report which indicated that interest rate increases are unlikely to be on the agenda until mid-2015. With this uncertainty out of the way, the MPC and the government must focus on implementing measures that boost business confidence and investment.”