Commenting on the July inflation figures published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“Although these figures are higher than expected, they should not be used as a reason for withdrawing the MPC’s policy stimulus. CPI inflation is still below the Bank of England’s target, while the RPI measure remains in negative territory.
“Recessionary pressures on businesses are still severe in the UK, and recent figures show that we performed considerably worse in the second quarter when compared to France and Germany. The key policy priority must be to alleviate the recession and help the economy return to growth.”