Business News 16 Jan 2013

Inflation 'creates risks' for UK economic recovery

The British Chambers of Commerce (BCC) has warned that rises in inflation over the coming months could jeopardise the UK's economic recovery.

According to recent figures from the Office for National Statistics, annual CPI inflation remained unchanged at 2.7% in December 2012, while RPI inflation rose marginally, from 3% to 3.1%.

The greatest upward influence came from rising gas and electricity prices, although the effect was largely offset by a fall in the cost of fuel and air transport.

However, the latest economic survey from the BCC suggests that many business owners expect inflation to rise in the near term, as a result of further increases in utility bills and food prices.

Read more at http://tinyurl.com/bdn9mcp