The MPC shouldn’t dwell on today’s inflation figures
Reducing the UK's deficit requires a serious review of government spending
Government action has contributed to high energy prices being sustained
Low inflation rates shouldn't tempt the MPC to loosen monetary policy
“The fall in inflation to 0.5% should neither be a cause for concern nor a reason to loosen monetary policy. The main reason for the fall in inflation is the collapse in oil prices and intensified competition in the retail sector.
“This is good news for consumers but they are also “one-off” factors which are unlikely to be repeated during late 2015. The MPC needs to look beyond the present and consider the outlook for inflation in the medium term.”
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Notes to editors:
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