The best business advice, opinion, news and expertise in Greater Manchester and further afield.

Tuesday, 17 August 2010

Inflation Figures

Dr Brian Sloan, Head of Business and Economic Policy at Greater Manchester Chamber of Commerce, said: "Inflation has shown only a marginal fall in the latest figures for July. The upward effects from food and transport are likely to bear down on consumer confidence and suppress demand.

"On this basis the Bank of England is right to maintain interest rates at record lows, and must do so well into the New Year to avoid an economic setback. The concern moving forward is that it is difficult to see inflation pressures easing due to the VAT increase, the impact of wheat prices and growing demand in the emerging economies. The UK is set for a difficult period of stagflation during which wage restraint must be exercised if interest rate rises are to be avoided."

No comments:

Post a Comment