• The Consumer Prices Index rose by 0.3% in the year to April 2016, down from 0.5% in the year to March.
  • Falls in air fares and prices for clothing and vehicles were the main contributors to the decrease in the rate. These downward pressures were partly offset by rising prices for motor fuels and recreational goods.

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

“After last month’s bigger than expected rise in the inflation rate, April’s fall will ease concerns that inflationary pressures may be strengthening. The weakening in service price inflation to less than 2.5%, and goods price inflation remaining in negative territory, reinforces the subdued outlook for inflation.

“While the Bank of England’s current monetary policy is conducive to maintaining stability, boosting business confidence will require much greater efforts on the part of the government to support growth at a time when the economy faces many headwinds.”

Ends

Notes to editors:

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

Media contacts:

Allan Williams – Senior Press Manager

020 7654 5812 / 07920583381

Chris McIntyre - Press Officer

020 7654 5813 / 07825 746 812