BCC director-general David Frost
Media playback is unsupported on your device
Video

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.