IoD reaction to inflation figures


Responding to the latest inflation figures....

...which showed that the Consumer Prices Index (CPI) fell to 2.4 per cent in June, Chris Parkhouse, Chairman of the Institute of Directors in the East of England said

“The economic rollercoaster continues. Bad news on growth from the International Monetary Fund has been followed by good news on inflation from the Office for National Statistics. The fall in headline inflation from 2.8 to 2.4 per cent is very welcome and suggests CPI inflation could be well below target by year end.

“Poor weather related clothing sales and heavy discounting accounted for much of the fall. But the underlying drivers were weak money supply, spare capacity and anaemic growth in earnings. These forces are likely to exert continued downward pressure on inflation well into 2013.

“But we shouldn’t be too complacent about inflation. Inflation is definitely heading downwards, but the rate of decline could slow. Brent crude oil prices have edged back up above $100 per barrel and America’s scorching summer has pushed up global corn and wheat prices sharply, with a potential knock-on effect on food prices in the UK later this year”.

Contacts for further comments or to arrange interviews:
Chris Parkhouse - 01223-873033, or by email via

The Institute of Directors (IoD) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with approximately 38,000 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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A membership organisation for Directors of organisations in Cambridgeshire. This is the local branch of the national IoD organisation.

Institute of Directors (Cambridgeshire)