CPI inflation unchanged in December 2012

Thursday 17 January 2013

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Annual CPI inflation remained at 2.7 per cent in December 2012, unchanged from the previous two months, it has been reported.

The Office for National Statistics reported that annual RPI inflation rose slightly, up from 3.0 per cent to 3.1 per cent.

John Longworth, director general of the British Chambers of Commerce, said inflation seems to be "pausing for breath" at the moment, with the CPI rate remaining unchanged for the third successive month.

"However, we expect that inflation will start to rise in the near term, as further rises in utility and food prices kick in," he stated.

"Businesses expect price rises over the coming months. Higher inflation is clearly a concern for the UK economy as it increases the squeeze on both businesses and consumers, further exacerbating an already weak economic environment."

Mr Longworth said that against this backdrop, the government needs to do more to support the economy and kick-start growth.

He claimed that recent steps to improve access to finance, such as the commitment to create a business bank, are welcome, but must be implemented at scale and with clear timetables.

"This will help to build business confidence at a time when the economic climate they are operating in is highly uncertain," the BCC chief added.

Posted by Steve Williams