24 March 2015

  |  CBI Press Team

News

The CBI today commented on the latest official Consumer Price Index (CPI), showing that inflation has fallen to 0.0% in February.

CBI comments on latest inflation figures

Rain Newton-Smith, CBI Director of Economics, said:

“Despite inflation falling to zero, it is unlikely we will see falling prices for a prolonged period, particularly as the pressure from lower oil prices fades.

“While lower oil prices are cutting costs for businesses, and leaving households with more money in their pockets, North Sea oil producers are taking a hit. The measures to support the industry in the Budget will help address concerns over job losses and investment freezes, but it is not out of the woods yet.

“With the Monetary Policy Committee still alert to the risk of very low inflation becoming entrenched, a rise in interest rates anytime soon seems off the cards.”