Commenting on the August CPI figures published today by the Office for National Statistics, David Kern, Economic Adviser to the British Chambers of Commerce, said:

“Today's rise CPI inflation was larger than expected, but RPI inflation fell.  And these new figures do not yet take account of the recent large falls in oil prices.  

"It is clear that CPI inflation will reach its peak within the next two or three months.  As the global financial crisis worsens, there is an urgent need to act promptly, in order to counter severe threats of recession. The MPC should urgently consider a rate cut to 4.75% in October.”