ANNUAL UK consumer prices index inflation remained at two per cent in June – at the Bank of England’s target rate – the latest monthly official figures show.
British Chambers of Commerce flagged its belief that upward pressure on inflation from sterling weakness – amid mounting no-deal Brexit fears as Tory leadership candidates Boris Johnson and Jeremy Hunt set out their stalls – would be offset by a “stalling economy”.
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Suren Thiru, BCC head of economics, said: “While the recent downward pressure on sterling’s value amid growing anxiety at the prospect of a no-deal exit may drive consumer prices higher over the near term, a stalling economy is likely to keep price growth broadly in line with Bank of England’s 2% target.
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“With inflation relatively subdued, the MPC’s (Monetary Policy Committee’s) focus should be on providing monetary stability to avoid further exacerbating the damage that’s already been done to consumer and business confidence by the continued Brexit impasse.”
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