BCC cuts growth forecast for UK

The British Chambers of Commerce (BCC) has cut its growth forecast for the UK economy, blaming rising inflation and a squeeze on household incomes.

It now expects expansion of 1.3% this year, compared with its previous estimate of 1.4%, with growth of 2.2% predicted in 2012, down from 2.3%.

BCC director-general David Frost said he expected economic growth to gather momentum at the end of this year.