BCC: UK inflation set to remain below 1% this year
Tuesday March 22nd, 2016
British Chambers of Commerce’s Chief Economist David Kern comments on the inflation figures for February 2016.
- The Consumer Price index rose by 0.3% in the year to February 2016, unchanged from January 2016
- The largest downward contribution came from the transport sector, while rising food prices offset this
- Goods annual inflation in February 2016 was -1.6%, while services annual inflation was 2.4%
Commenting on the inflation figures for February 2016, published by the ONS, David Kern, BCC Chief Economist at the BCC, said:
“The rebound in oil prices in recent weeks, and gradual increases in wages, are likely to push inflation slightly higher over the next few months, but we expect the annual rate to remain below 1% until the final months of this year, with the 2% target not met until the end of 2017.
The MPC can afford to take a relaxed view and maintain interest rates at their current low level for the foreseeable future. Other major central banks are also adopting a more dovish attitude. The main priority for the UK must be to make every effort to sustain the economic recovery.”
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