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

Tuesday, 14 December 2010

Inflation

Dr Brian Sloan, Head of Business and Economic Policy at Greater Manchester Chamber of Commerce, said: "Today’s inflation figure, whilst still above the Bank of England’s target has remained fairly stable at 3.3%, a slight increase of 0.1%. Food and clothing were amongst the largest factors causing the rise, which is a result of increased wheat and cotton prices.

"These influences will ease, though the VAT increase in the New Year will add new pressures on inflation and therefore on consumer spending. The inflation figure and higher import prices of raw materials are adding to the growing argument for interest rates rises, though we believe the Bank of England must maintain low interest rates at this time to avoid further pressure on household spending and businesses."

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