• Annual CPI inflation at 4.8% in November, down from 5.0% in October
  • Annual RPI inflation at 5.2% in November, down from 5.4% in October

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

“The fall in inflation in November was as expected, and will accelerate in the early months of 2012. The latest BCC forecast* predicts inflation will fall from an average of 4.5% in 2011, to 3.3% in 2012 and 2.0% in 2013. For annual average RPI inflation, we predict an average of 5.2% in 2011, 3.5% in 2012 and 2.3% in 2013.

“The fall in inflation strengthens the case for an increase in Quantitative Easing (QE). The latest figure should reassure the Monetary Policy Committee that it is correct to persevere with expansionary measures. While an increase in QE is necessary, it is not on its own sufficient enough to support growth in the economy.

“The government must supplement any additional QE with other measures including the rapid implementation of its credit easing plans. In addition, moves to reduce regulation, and cut business rate increases next year, which are currently pegged to last September’s peak inflation figure of 5.6%, would help businesses grow and create jobs.”


Notes to editors:

ONS inflation figures: http://www.ons.gov.uk/ons/rel/cpi/consumer-price-indices/november-2011/index.html

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 over 100,000 businesses across the UK, which employ over five million people.

Media contacts:

Liz Larvin
Tel: 020 7654 5813 / 07825746812
Email: l.larvin@britishchambers.org.uk

Lisa Morrison
Tel: 020 7654 5812 / 07717682221
Email: l.morrison@britishchambers.org.uk