Business West comment on inflation figures published today

By Anita Jaynes on 17 December, 2013

The Office of National Statistics have today published the following inflation figures:

  • Annual CPI inflation was 2.1% in November 2013, down from 2.2% in October
  • The largest contribution to the fall came from food, gas and electricity, partly offset by upward contributions from transport, recreation and culture
  • Goods price annual inflation was 1.6% in November, much less than the 2.6% rate for services
  • Annual RPI inflation was 2.6% in November, unchanged from October

Commenting on the inflation figures for November 2013, Phil Smith, Managing Director of Business West said:

“Businesses will barely notice the small drop in the rate of inflation against the rise in some of their input costs but, hopefully, this reduction may ease pay rise pressures that businesses will face from their employees struggling with the relentless rise in the cost of living.

“However inflation remains a concern and the UK’s rate of inflation remains higher than many other major economies, being considerably higher than the US and the eurozone. The MPC must continue with its two-pronged approach of providing forward guidance on low interest rates alongside keeping inflation low, to provide a stable backdrop for businesses to drive a sustainable recovery.”

To find out more about ONS visit: www.ons.gov.uk/ons/taxonomy/index.html?nscl=Price+Indices+and+Inflation

To find out more about Business West visit: www.businesswest.co.uk