Commenting on the June inflation figures published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:  “There was a marked fall in inflation in June, with the CPI measure falling below the 2% target and RPI moving further into deflationary territory.

The figures confirm the BCC’s assessment that in the short-term, the main policy priority must be countering the risks posed by recession and deflation.    

“Inflation is a longer-term threat which must be dealt with by a credible exit strategy, but this can only be applied when the recession ends. In the near future we urge the Bank of England to increase the scale of quantitative easing well beyond £125 billion.”