CPI fall won’t bolster consumer confidence, BRC says

The announcement today (February 14th) that the consumer price index fell to 3.6 per cent in January will do little to improve consumer spending, it has been claimed.

Despite figures from the Office for National Statistics revealing inflation dipped to its lowest level for over a year, the British Retail Consortium (BRC) believes it will do little to improve conditions on the high street.

Executives in FMCG sales jobs should further note, the BRC suggested the CPI dip was partly driven by retailers’ discounting and promotions.

BRC director general Stephen Robertson said: “On its own this isn’t going to produce the substantial revival in consumer confidence which retailers and the economy desperately need.”

The expert claimed it was further evidence that the increase in the business rate, due to come into effect from April,  was unjustifiable as it was based on last September’s 5.6 per cent retail price index, which stood at a 20-year high.

The Bank of England aim to bring inflation down to around two per cent this year, with the BRC urging the government to reform the business rate to avoid damage to jobs and investments.

Posted by Jake Cantrell

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