fbpx

News & Blog

Read the latest business news, blogs and thought leadership articles from our members, as well as updates on the Edinburgh Chamber of Commerce's work in the city.

News & Blog

BCC comments on inflation figures

Posted: 20th March 2019

Commenting on the inflation statistics for February 2019, published today by the Office for National Statistics, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“Inflation picked-up for the first time since August 2018, with rising prices across a range of items including food and alcohol, placing the largest upward pressure on price growth in February. 

“Inflation is likely to drift higher in the coming months as the expected increase in Ofgem’s energy price cap in April enters the calculation. Businesses also continue to report that the cost of imported raw materials are rising. As these high input costs filter through supply chains, they could increase the upward pressure on consumer prices in the short-term.

“Overall, the UK’s weakening economic outlook is likely to ensure that any increase in consumer prices would be largely transitory, and inflation is expected to remain close to the Bank of England’s 2% target for some time to come.

“With the current trajectory for inflation largely benign, there remains sufficient scope to keep interest rates on hold through this year, particularly against a backdrop of increasing anxiety over Brexit and slowing economic growth.

“The overriding priority must be for parliament to avoid a messy and disorderly departure from the EU, which would likely drive a marked drop in sterling and could significantly increase inflation and the cost pressure on businesses and consumers.”

 

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
Read more here