UKIP Economy Spokesman, Mark Reckless, this morning welcomed the continued low level of Consumer Price Inflation (CPI) with prices on that measure up 0.1% on the year to July 2015.
However, Mark expressed concern at policy makers dragging their feet on returning interest rates to more normal levels.
Prices tend to fall in July with the summer sales, but this year the fall in the CPI index from 128.2 to 128.0 was less than the fall from 128.3 to 127.8 between June and July last year. We are also benefitting temporarily from falling petrol and diesel prices lowering the inflation rate by 0.7%.
Mark Reckless said: "For over six years official interest rates have been at 0.5% with £375 billion of money printed. A modest rise in interest rates now may help forestall larger rises later, so ultimately could protect mortgage holders. Meanwhile, pensioners and those on fixed incomes have been squeezed for too long, while banks have failed to allocate capital to more productive uses. UKIP believes that low inflation at the moment is not a good excuse to keep interest rates continually at crisis levels"