Pictured above: Christine Braddock, president of Birmingham Chamber of Commerce

Business leaders are urging the Bank of England to pay close attention to the results of Birmingham Chamber of Commerce Group's next quarterly economic survey which will show if regional businesses are coping well with high inflation figures.

Today's announcement that inflation remains at 4.5 per cent is putting increasing pressure on businesses.   

Christine Braddock, president of Birmingham Chamber of Commerce, said:  "Our quarter two survey will provide a good guide on how local businesses are coping with high inflation.  

"Businesses have little choice but to freeze pay, which in turn leads to less spending by consumers producing a vicious circle.  Fuel has gone up by 40 per cent in the last year and food price have increased, flour nearly doubling.

"Interest rates can't go any lower and our members continue to inform us that they are benefitting from the current rates. We do however recognise that interest rates will need to rise at some point later this year."

Birmingham Chamber of Commerce Group's latest quarterly economic survey is due to be published at the end of this month.