Commenting on the official inflation figures published today, Grahame Smith, Scottish Trades Union Congress (STUC) General Secretary said:
“These figures reflect the exceptional circumstances of December 2008 when the VAT cut was introduced and fuel prices fell sharply. They should not be taken as evidence of a confident, buoyant economy. Although inflation is likely to remain above target in the very short-term, credible concerns over longer-run deflationary pressures persist.
“It is essential that the Monetary Policy Committee resists calls to consider a rise in interest rates. Increasing the cost of borrowing while unemployment is high, business investment low and consumer confidence weak is a recipe of disaster. We need to avoid a double-dip, not deliberately provoke one”.
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