The CBI commented on the latest official Consumer Price Index (CPI), showing that inflation has remained at 0% in March.
Rain Newton-Smith, CBI Director of Economics, said:
“Zero inflation in March comes as no surprise, given the drop in commodity prices we have seen for some time now. Inflation should start to pick up in the second half of the year, especially as the downward pressure from lower oil prices eases.
“Falling prices have seen money go that bit further for households’ weekly shop, and many firms are benefitting from lower oil prices. But North Sea producers, who create thousands of jobs, have certainly taken a hit.”