Cameron hopes inflation will fall in 2012

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LONDON | Fri Jan 6, 2012 8:38am GMT

LONDON (Reuters) - Prime Minister David Cameron said on Friday he hoped inflation in Britain would fall in 2012 but said the rebalancing of the country's economy had not gone as fast as he would have liked.

"Inflation has been stubbornly high and that had an effect on household income last year and so consumers felt particularly squeezed. Looking into 2012 one of the trends I hope to see happen is a fall in the level of inflation and so therefore households feeling under less pressure than they did in 2011," Cameron told BBC radio.

But he said it was going to be "a difficult year, it's a testing year."

Britain's economy needed a rebalancing away from government spending, excessive borrowing, financial services and consumption and towards business investment, export and manufacturing, he said.

"In places there is a rebalancing taking place but it's not going as far and as fast as I would like it to and we need to do better on that front," he said.

(Reporting by Adrian Croft; editing by Keith Weir)
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Comments (3)
ektope wrote:
Inflation will fall but unemployment and public deficit will rise Mr Tory .Growth will be zero and the QE will do nothing to help, the economy will go into double dip.

Jan 06, 2012 11:23am GMT  --  Report as abuse
OldKyo wrote:
Of course everybody knows that inflation will drop this year as The Con-Dem’s VAT increase from 1/1/2011 doesn’t effect the calculations of CPI or RPI anymore. It was a crss statement to make.

Jan 06, 2012 12:44pm GMT  --  Report as abuse
mgb500 wrote:
Is Cameron as stupid as he’s coming across??? He “hopes” inflation will fall does he?? So what is his useless government going to do about it? Precisely nothing – just as those fellow idiots in NewLieMore!

The UK has been saddled with the most ineffective, pathetic bunch of spineless, incompetent, ego-centric politicians for the last 40 years – and it’s us peasants who end up paying for it!

Jan 07, 2012 5:12pm GMT  --  Report as abuse
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