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

Tuesday, 16 November 2010

Inflation Figures.

Commenting on the latest inflation figures, Dr Brian Sloan, Head of Business and Economic Policy at Greater Manchester Chamber of Commerce, said: "A slight increase in CPI inflation to 3.2% is perhaps not unexpected given the fuel duty increase from October 1, and along with the upward pressure due to food and alcohol prices there will be little to cheer consumers as we move towards the festive period.

"Another tax increase, the VAT increase in January, will further increase prices so consumer demand will weaken. Our Quarterly Economic Survey is underway and will report on the latest economic conditions affecting the region in mid-December. Fortunately the Bank of England is likely to ignore inflation for some time yet and hold down interest rates, though this will mean we will be stuck with well above target inflation for some time. At present this is the lesser of the two evils, an interest rate rise at this time would make a double-dip recession a certainty."

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