WEST Midlands business leaders expressed relief at the announcement by the Office for National Statistics that inflation figures have dropped from November’s 4.8 per cent to 4.2 per cent.
Michael Ward, president of Birmingham Chamber of Commerce, said many of the factors which drive inflation upwards are largely out of the control of the Bank of England.
However, he did argue that things could be done to tackle the issue.
“We would urge the Monetary Policy Committee to increase the current quantitative easing (QE) programme from £275 to £325 billion,” he said.
“We believe this would help create a much-needed boost for the economy in this period of flat growth and demand.
“The fall in inflation has been helped by heavy discounting from retailers over the Christmas period and recent cuts in energy tariffs by the big utilities.
“We do expect to see a continuing fall in inflation over the next few months as the many unique global shocks of 2011 is unlikely to be repeated and will therefore fall out of the calculations.”