Commenting on the November inflation figures, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“These figures are marginally higher than expected but are not really surprising. The Bank of England and the Treasury had forecast that inflation would accelerate over the next few months, probably approaching 3% before falling again.
“This temporary surge in inflation does not justify a tightening of monetary policy, but reinforces the need for the Treasury to be more transparent about medium-term plans for cutting the UK’s budget deficit.“Demand in the real economy is still weak, and as spare capacity remains ample, it is important to concentrate on measures that allow business to drive recovery. While there is no immediate need for the MPC to increase quantitative easing beyond £200bn, it must consider additional steps aimed at reviving bank lending to credit-worthy companies.”