Four – year inflation low to ease pressure on businesses and consumers

By Anita Jaynes on January 15, 2014

Yesterday the Office of National Statistics (ONS) published the inflation figures for December 2013. The key stats published are:

  • Annual CPI inflation was 2.0% in the year to December 2013, down from 2.1% in November
  • The largest contributions to the fall in inflation came from food and non-alcoholic drinks, partly offset by an upward contribution from motor fuels
  • Goods price inflation in December was 1.7%, while services inflation was 2.4%

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

“It is good news to see inflation fall to its 2% target for the first time since 2009, and should ease the pressure on businesses and consumers. With inflation likely to remain at these levels during most of 2014, the unjustified demand in some quarters for interest rate increases should relent. In the meantime, the MPC needs to maintain its two-pronged approach with forward guidance on interest rates, and a continued commitment to keeping inflation at its 2% target.”

To view the full ONS report visit: www.ons.gov.uk