Inflation down again in November

THE UK inflation rate has continued its downward trend with a further decline during November, latest figures have shown.

The Office for National Statistics said the Consumer Prices Index (CPI) had registered 2.1% in the year to November 2013, down from 2.2% in October.

The largest contributions to the fall in the rate came from food and the utilities (gas and electricity). These were partially offset by upward contributions from the transport sector and from some aspects of recreation & culture.

Business leaders in the West Midlands have welcomed the fall.

Tim Pile, president of the Greater Birmingham Chambers of Commerce said that as inflation reduces, business confidence would increase.

“The figure of 2.1% is still above target but if the trend continues downwards this will be a positive sign for businesses. High inflation can be damaging for business and the economy so the Bank of England’s strategy appears to be on the right track,” he said.

“In the chamber’s Quarterly Economic Survey for Q3, 39% of manufacturers said price pressures stemmed from rising raw material costs and 51% of service sector firms said that price increases came from overheads.”