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"The trend [in producer inflation] is moving in the right direction, and this will contribute to lower consumer price inflation in 2012"
- David Kern, chief economist at the British Chambers of Commerce
U.K. producer output prices fell in December for the first time since June 2010, as input prices eased 0.6 per cent. Factory gate prices dropped 0.2 per cent from November, the Office for National Statistics announced on Friday.
"Though price inflation for both inputs and outputs is still relatively high in absolute terms, the trend is moving in the right direction, and this will contribute to lower consumer price inflation in 2012," said David Kern, chief economist at the British Chambers of Commerce.
"As the squeeze on businesses and consumers eases, there will be scope for demand in the economy to improve gradually later this year."