IoD reaction to Inflation figures

Dated: 12 April 2011

Commenting on the annual rate of inflation (CPI) falling to 4%, down from 4.4% in February, IoD Chief Economist Graeme Leach, said:

“Weakness in the High Street is feeding through to lower inflation and this is good news for the interest rate outlook. We continue to believe financial markets are too pessimistic about the interest rate outlook over the next 12-18 months.

“Today’s inflation figures will encourage those on the MPC who don’t want to raise interest rates and believe we should see through the current inflation rate to 2012 when the situation could look very different owing to indirect tax effects falling out of the year-on-year index and weak money supply growth reducing underlying inflationary pressures.”

ENDS

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Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
Tel: +44 (0)20 7451 3392
Mob: +44 (0)7814 386 243
Email: edwin.morgan@iod.com
Website: www.iod.com/policy

Notes to editors

  • The IoD (Institute of Directors) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with upwards of 45,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
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