• Annual output inflation up from 4.0% in January to 4.1% in February; annual input inflation up from 6.6% in January to 7.3% in February
Commenting on the producer price figures for February 2012, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:“The producer price figures are higher than many were expecting. Most analysts predicted the falls in inflation seen in recent months to continue, but instead there was a reversal. We believe this is temporary, and inflation will continue to fall throughout the year. The squeeze on businesses and consumers will still ease gradually, but not as quickly as we had hoped.
“Recent increases in oil prices will reinforce concerns over future trends in inflation, making it even more important to adopt policies that will sustain growth. This means that both the MPC and the government must play their part. QE must be made more effective and credit easing measures should be introduced without delay. Most importantly, we urge the Chancellor to deliver a bold and imaginative Budget that will empower the private sector.”