• Consumer Price Index rose by 0.3% in the year to January 2016, up from 0.2% rise in the year to December 2015
  • The main contributors to the small rise were motor fuels, food, and alcoholic beverages. This was partly offset by falls in air fare prices
  • Goods annual inflation in January 2016 was -1.5%, while services annual inflation was +2.3% 

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

“While UK inflation continues to edge up slowly, inflationary pressures are likely to remain muted for the foreseeable future. Labour costs remain subdued, and any upturn in oil prices will take considerable time to be felt, given recent sharp declines.

“Our forecast remains that inflation will edge up to around 1% in the second half of this year, and is likely to stay below the 2% target until well into 2017. Risks remain associated with the weakening global economic outlook. The MPC is likely to avoid any thought of raising interest rates for a considerable time yet. In the face of global headwinds, the policy priority remains to support our exporters.”

Ends

Notes to editors:

The BCC’s Annual Conference, entitled Decision Time: New Politics, New Economy, New Britain? Is taking place on 3 March 2016 at the QEII Conference Centre. For more information or to register for a free press pass, please visit www.bccconference.co.uk or contact the press office.

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