INFLATION – “NO NEED TO HIT PANIC BUTTON”

20 March 2007

Reacting to the inflation figures published by the Office of National Statistics today (Tuesday) British Retail Consortium Director General Kevin Hawkins said:

“CPI inflation is up but the main drivers are rising housing and education costs. The BRC’s Shop Price Index, which is a more rigorous and accurate measure of high street inflation, shows shop prices rose year-on-year by a much more modest 1.79 per cent in February. That was confined to food and caused by temporary increases in world commodity prices which are already receding.

“In non-food categories price inflation is virtually non-existent.
 
“RPI inflation is being pushed up by increases in energy and housing costs, both well outside the control of retailers or consumers.
 
“There is no need for the Bank of England to hit the panic button for an early interest rate rise on the basis of these figures.”