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

Tuesday, 17 May 2011

Inflation Rises

Commenting on today’s inflation figures from the Office of National Statistics, Dr Brian Sloan, Head of Business and Economic Policy at Greater Manchester Chamber of Commerce, said: “As we warned last month the fall in the consumer prices index to 4.0% was only temporary, caused by the later timing of Easter this year compared to last. With inflation now rising sharply to 4.5% and with consumers already lacking confidence to commit to those big ticket purchases the effect will ripple through the economy over the coming months, inevitably reducing demand and suppressing job creation in the private sector.

“We are in a low growth environment and trading will be difficult in the domestic economy for some time to come so we must focus on promoting exports. In our opinion an interest rate rise at this time would be very damaging to the domestic economy, although inevitably this release will increase pressure on the Bank of England to raise interest rates; though we suggest that the Bank remains focused on supporting domestic growth.”

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