• Annual CPI inflation in August 2014 was 1.5%, down from 1.6% in July
  • The largest contributions to the fall in inflation came from motor fuels, food and non alcoholic drinks
  • These were partly offset by upward contributions from clothing,  transport services and alcohol
  • Goods price inflation in August 2014 was 0.6%, while services inflation was 2.7%

Commenting on the CPI inflation figures for August 2014, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:

“These figures highlight that inflationary pressures in the economy are easing and remain well below the 2% target. The drop in inflation alongside the recent stagnation in wage growth will relieve pressure on the Bank of England. While the UK recovery remains on track, this is clearly not the time to put the recovery at risk with premature interest rate rises. 

“The main priority for the MPC must be to nurture business confidence by offering the stability of working in a low interest rate environment. To secure a lasting recovery the government should continue to provide further measures in key areas such as improving access to finance for growing firms, and supporting UK exporters.” 

Ends

 

Notes to editors:

ONS: http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/august-2014/stb---consumer-price-indices---august-2014.html

Media contacts: 

Lisa Morrison – Head of Media

020 7654 5812 / 07717682221

Nick White – Press Officer

020 7654 5813 / 07825746812 

Natasha Downes – Press Officer

020 7654 5817 

The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 52 Accredited Chambers of Commerce across the UK, representing thousands of businesses of all sizes and within all sectors. For more information visit: www.britishchambers.org.uk