News

The latest from the Black Country 

BCC: UK Inflation Set to Remain Low in Foreseeable Future

  • Consumer Price Index rose by 0.3% in the year to January 2016, up from 0.2% rise in the year to December 2015
  • The main contributors to the small rise were motor fuels, food, and alcoholic beverages. This was partly offset by falls in air fare prices
  • Goods annual inflation in January 2016 was -1.5%, while services annual inflation was +2.3%

Commenting on the inflation figures for January 2016, published today by the ONS, David Kern, BCC Chief Economist, said:

“While UK inflation continues to edge up slowly, inflationary pressures are likely to remain muted for the foreseeable future. Labour costs remain subdued, and any upturn in oil prices will take considerable time to be felt, given recent sharp declines.

“Our forecast remains that inflation will edge up to around 1% in the second half of this year, and is likely to stay below the 2% target until well into 2017. Risks remain associated with the weakening global economic outlook. The MPC is likely to avoid any thought of raising interest rates for a considerable time yet. In the face of global headwinds, the policy priority remains to support our exporters.”

Last modified on Tuesday, 16 February 2016 13:08

News Categories


We use cookies to improve our website and your experience when using it. Cookies used for the essential operation of the site have already been set. To find out more about the cookies we use and how to delete them, see our Privacy Policy.

I accept cookies from this site

EU Cookie Directive Plugin Information