Commenting on the inflation figures for August, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: 

“Although these figures are slightly higher than expected, CPI inflation fell further below the Bank of England’s 2% target, and the RPI measure remains firmly in negative territory. The figures do not alter the basic fact that signs of recovery remain fragile, and the main policy priority is to avoid a set back.    

“The persistent weakness in bank lending is still a major problem, which threatens small firms in particular. Against this background, it is important for the MPC to increase the quantitative easing programme to £200bn, and to consider special measures, such as a negative interest on deposits held by banks at the Bank of England.”