CPI inflation nears its peak

Commenting on the July CPI figures published today by the ONS, David Kern, Economic Adviser to the British Chambers of Commerce, said:
 
"The rise in July annual CPI inflation was slightly higher than expected. But the new figures do not yet take account of the recent large falls in oil prices. Lower than expected producer prices support our view that CPI inflation will reach its peak within the next two or three months.
 
"The threats of recession are worsening. Although it is difficult for the MPC to consider rate cuts while inflation is still rising, it should not hesitate to cut rates later in the Autumn once it is clear inflation has peaked.
 
Ends

Media Contacts:

Fiona Cunningham
Tel: 020 7654 5812
Email: f.cunningham@britishchambers.org.uk

OR

Sam Turvey
Tel: 020 7654 5813
Email: s.turvey@britishchambers.org.uk

Notes to Editors:

The British Chambers of Commerce (BCC) is the National Voice of Local Business.
The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce serving business across the UK, which employ over five million people.