• Annual CPI inflation was 1.7% in February 2014, down from 1.9% in January
  • The largest contribution to the fall in inflation came from motor fuels, with smaller effects from household services, clothing and footwear
  • These were partly offset by upward contributions from furniture, recreation and culture
  • Goods price inflation in February 2014 was 1.2%, while services inflation was 2.4%

Commenting on the Consumer Price Inflation figures for February 2014 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:

“The further fall in inflation is good news for businesses and consumers, and will strengthen the argument that there are no immediate pressures on capacity, making it easier for the Bank of England to persevere with low interest rates. At the moment, there is no need to consider tightening monetary policy, as we expect inflation to remain around the 2% target for the next two to three years. The current economic environment of low inflation and low interest rates should make it easier for businesses to plan ahead and invest.”