Pictured above: Christine Braddock
Business leaders are reeling following the announcement today of
the latest inflation increase to 4.4 per cent in February. The
figure is higher than the expected CPI rate of a 28-month high of
4.3 per cent. And Bank of England Governor Mervyn King warns
inflation is set to climb towards five per cent.
Christine Braddock, President of Birmingham Chamber of Commerce,
says the latest figures, driven by worldwide natural disasters and
conflicts make it imperative that fuel duty is not increased by 1p
plus inflation.
She said: "Inflation affects us all as commodity prices
are increased, which in turn shrinks profits and can lead to loss
of employment. This will be fatal to the West Midlands which has
the highest unemployment rates in the whole of the UK.
"We are calling on the Bank of England Monetary Policy Committee
to hold its nerve and not increase interest rates. Although
inflation hurts business, low interest rates are benefiting them,
especially the worst hit manufacturers."