The likelihood of the Bank of England raising interest rates has dipped after inflation remained unchanged in June, business leaders said today.
The Office for National Statistics said the Consumer Price Index (CPI) remained at 2.4 per cent despite the cost of motor fuels and domestic gas and electricity rising.
Consumers benefitted from falling prices of clothing, games, toys and hobbies.
Paul Faulkner (pictured), chief executive of Greater Birmingham Chambers of Commerce, said: “Pressure on the Bank of England to raise interest rates has eased, as inflation levels remained lower than expected this month.
“This is despite a continued rise in the price of petrol following President Trump’s decision to withdraw from the Iran Nuclear Deal.
“Though it was disappointing to see wage growth fall yesterday, the latest CPI figures holding at 2.4 per cent is better news for consumers.
“Petrol prices have risen, but the prices of clothing, games, toys and hobbies have fallen, just in time for the summer holidays.
“Nonetheless, those driving to their holiday destinations will still be hit by inflamed fuel costs, as will transport businesses across European Union.
“Our latest Quarterly Business Report mirrored today’s statistics, showing concerns around inflation lessening among Greater Birmingham businesses, while overall price pressures also reduced.”
The GBCC’s latest Quarterly Business Report can be found here.
Note to Editors:
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Greater Birmingham Chambers of Commerce
Greater Birmingham Chambers of Commerce is one of the UK’s oldest and largest Chambers. It has nearly 3,000 member companies that employ over 200,000 plus affiliate organisations representing 15,000 people. It offers extensive services to industry and commerce, having served the interests of business for three centuries, promoting trade locally, nationally and internationally.
Members of Greater Birmingham Chambers of Commerce: Birmingham Chamber of Commerce, Burton & District Chamber, Chase Chamber, Lichfield & Tamworth Chamber, Solihull Chamber, Sutton Coldfield Chamber of Commerce, Asian Business Chamber of Commerce, Future Faces Chamber of Commerce, the British American Business Council and the Greater Birmingham Commonwealth Chamber of Commerce.