Annual CPI inflation down from 3.5% in March to 3.0% in April
Annual RPI inflation down from 3.6% in March to 3.5% in April
Commenting on the inflation figures for April, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“But inflation remains well above the official target of 2%, and the government must look at ways of supporting businesses, while sticking to its plan to reduce the deficit. The decline in inflation should not strengthen calls for an increase in Quantitative Easing (QE) at present. However, a further increase in QE might be necessary if the eurozone crisis deepens further and creates difficulties for the banking system.
“The government and the MPC must look to ensure that the additional liquidity created by previous increases in QE improves the flow of lending to viable businesses. We urge the government to consider the creation of a business bank, and the MPC must reconsider its reluctance to purchase private sector assets.”