09/03/12

  • Annual output inflation up from 4.0% in January to 4.1% in February; annual input inflation up from 6.6% in January to 7.3% in February

Commenting on the producer price figures for February 2012, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“The producer price figures are higher than many were expecting. Most analysts predicted the falls in inflation seen in recent months to continue, but instead there was a reversal. We believe this is temporary, and inflation will continue to fall throughout the year. The squeeze on businesses and consumers will still ease gradually, but not as quickly as we had hoped.

“Recent increases in oil prices will reinforce concerns over future trends in inflation, making it even more important to adopt policies that will sustain growth. This means that both the MPC and the government must play their part. QE must be made more effective and credit easing measures should be introduced without delay. Most importantly, we urge the Chancellor to deliver a bold and imaginative Budget that will empower the private sector.”

Ends

Notes to editors:
ONS: http://www.ons.gov.uk/ons/rel/ppi2/producer-price-index/february-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: http://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