PRICES REMAIN WITHIN TARGET
[ 21-05-2014 ]
Commenting on the release of official figures which show that CPI inflation has risen to 1.8% in April, Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said:
"Despite the fact that there has been a small increase in inflation last month, businesses will not be overly concerned. Inflation remains exactly where our economy needs it to be - below the 2% mark - and looks likely to remain there for some time to come. With price increases and wage rises continuing to be subdued, pressure on the Bank of England to raise interest rates will remain low.
"In the wider economic context, what may be of greater concern in Scotland is the disparity in house price inflation between the South East of England and the rest of the country. The Governor of the Bank of England has rightly identified this as an important issue and this ties in to the ability of our construction industry, and planning and regulatory systems, to respond in a positive and timely way to demand. For this to happen, Government needs to be planning effectively to help ensure a supply of skills that the construction sector can access.
"Our economic challenges: growth, skills, employment and investment are all interconnected and we need to plan now to meet the demands of our growing businesses and economy."
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