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BCC: Low Inflation Will Support Economic Growth

  • Annual CPI inflation in March 2015 was 0.0%, unchanged from February
  • Goods price inflation in March 2015 was -2.1%, while services inflation was 2.4%

Commenting on the CPI inflation figures for March 2015 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce said:

“Continued low inflation is good news for the economy, particularly at a time when wage increases are modest and businesses are facing challenges. Contrary to expectations inflation has remained unchanged, however there is still is distinct possibility of deflation in coming months.

“If deflation is to emerge it should be short-term because of the strength of the UK’s largest sector, the service sector, where inflation remains above 2%.

“The main cause of low inflation in the economy is the fall in energy and food prices, which will help to ease cost pressures for consumers and businesses, and will support economic growth.

“To sustain business confidence we need a firm commitment from the MPC to keep interest rates on hold until at least early 2016.”

Last modified on Tuesday, 14 April 2015 13:00

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