Commenting on the July CPI figures published today by the ONS, David Kern, Economic Adviser to the British Chambers of Commerce, said:

"The rise in July annual CPI inflation was slightly higher than expected. But the new figures do not yet take account of the recent large falls in oil prices. Lower than expected producer prices support our view that CPI inflation will reach its peak within the next two or three months.

"The threats of recession are worsening. Although it is difficult for the MPC to consider rate cuts while inflation is still rising, it should not hesitate to cut rates later in the Autumn once it is clear inflation has peaked."