Small fall in inflation will ease the pressure felt by businesses and consumers, says BCC
20th December 2013
Annual CPI inflation was 2.
1% in November 2013, down from 2.2% in October The largest contribution to the fall came from food, gas and electricity, partly offset by upward contributions from transport, recreation and culture Goods price annual inflation was 1.6% in November, much less than the 2.6% rate for services Annual RPI inflation was 2.6% in November, unchanged from October Commenting on the inflation figures for November 2013, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: -The small fall in inflation will help ease the pressure felt by businesses and consumers at a time when earnings are still rising by less than 1%. It will also make good reading for the MPC as it tries to keep interest rates at a historic low for an extended period, and suggests that in the short term it is possible to combine low inflation with low interest rates. -However inflation remains a concern for many businesses, and imminent energy rises may add to inflationary pressures in the months ahead. The UK's rate of inflation remains higher than many other major economies, and is considerably higher than the US and the eurozone. The MPC must continue with its two-pronged approach of providing forward guidance on low interest rates alongside keeping inflation low, to provide a stable backdrop for businesses to drive a sustainable recovery.