Reducing Inflation Remains Challenging
15 October 2013 in Chamber News
• Annual CPI inflation was 2.7% in September 2013, unchanged from August
• Annual RPI inflation was 3.2% in September 2013, marginally down from 3.3% in August
• The largest upward contribution to annual inflation came from air fares, but this was offset by a downward contribution from petrol and diesel prices
Commenting on the inflation figures for September, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“It is disappointing that there was no fall in inflation last month. We are forecasting inflation to fall gradually this year, but the pace appears to be slower than we anticipated. The UK seems to be more prone to price increases than other major economies, and with large increases in utility prices expected soon, we could see further setbacks that keep inflation above the 2% target.
“Above target inflation has been one of the main reasons why the UK economy has relatively underperformed in recent years, and while the UK is recovering, we need to see inflation fall to ease the squeeze on businesses and consumers. Growth remains fragile, so the government and the MPC must do everything possible to maintain economic stability.”