Reducing inflation remains challenging

15th October 2013

· 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.

You might also be interested in

Local Businesses List Cleanliness, Safety and Retail As Their Top Priorities For Improvement in South Yorkshire’s Civic Centres

Mon 8th July 2024

Safety, cleanliness and the quality of retail have all been cited by South Yorkshire businesses as top priorities for their local urban cores. This is according to the recently-published findings of the Town and City Centre Survey.

BCC Quarterly Economic Survey: Business Confidence Continues To Tick Up in Q2

Mon 8th July 2024

The BCC’s Quarterly Economic Survey – the UK’s largest and longest-running independent business survey – shows measures of business confidence and business conditions slightly improved in Q2 2024, albeit from a very low base.

Bank Seeks Further Evidence Before Rate Cut

Mon 1st July 2024

David Bharier, Head of Research at the British Chambers of Commerce reacts to the Bank of England’s latest interest rate decision


Mon 1st July 2024

Director General of the BCC, Shevaun Haviland, has urged the next Government to stop treading on eggshells around trade with the EU if it wants to grow the UK economy.