Commenting on the official inflation figures published today, Grahame Smith, Scottish Trades Union Congress (STUC) General Secretary said:
“Today’s jump in inflation is explained by the conflation of a number of factors including the rise in VAT, higher fuel costs and higher prices associated with last month’s cold snap. The STUC accepts that inflation is likely to remain above target in the short-term but concerns persist over longer-run deflationary pressures.
“It is essential that the Monetary Policy Committee continues to resist 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 for disaster. The danger of a double dip recession is real; the MPC must be careful not to deliberately provoke one”.
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