11/05/12

  • Annual output inflation down from 3.7% in March to 3.3% in April; annual input inflation down from 5.6% in March to 1.2% in April

Commenting on the producer price figures for April 2012, published today by the ONS, David Kern, Chief Economist at the British Chambers of commerce (BCC), said:

“These figures show a welcome decline in producer price inflation. The fall in output inflation was less than expected, but input inflation fell fairly sharply and this will likely be reflected in steady falls in CPI inflation later in the year.

“So far, consumer price inflation has not dropped as quickly as the MPC expected, and the outlook is still uncertain. But the overall trends are favorable. While the strong pound is creating a challenging environment for British exporters, these figures will have a beneficial effect on inflation, which in turn will help reduce the squeeze felt by businesses and consumers. Recent falls in oil prices, which will reverse rises seen earlier in the year, could also help. But the economic environment will remain tough for the time being, and priorities within the government’s existing spending envelope need to be readdressed so businesses are able to drive recovery.”

Ends

For further information please contact the BCC press office on 020 7654 5813 / 5812 or 07825746812 / 07717682221.

Notes to editors:

ONS: http://www.ons.gov.uk/ons/rel/ppi2/producer-price-index/april-2012/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. For more information visit: www.britishchambers.org.uk

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