Low inflation prompts CBI to raise UK growth forecast

The Confederation of British Industry (CBI) has upgraded its UK growth forecast in the face of low inflation and falling unemployment figures.

The CBI's forecast for economic growth in 2015 is now 2.7%, up from a forecast of 2.5% it made in November. GDP is expected to rise 0.7% during each quarter of this year, and then grow by 2.6% in 2016 The organisation said growth will be supported by low inflation, which is currently 0.5%, the low oil price, increased household spending, and falling unemployment. It is also helped by low interest rates as it is now unlikely that rates will rise this year and may even be cut further. However, political volatility thanks to the UK election and crises in Greece and Ukraine could negat...