Inflation warning

Councillor Roy Perry, leader of Hampshire County Council

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THE Wessex region of the Federation of Small Businesses has warned that interest rates must remain static in the face of increasing inflation.

The Consumer Prices Index, upon which inflation is measured, increased in July from 4.2 to 4.4 per cent.

Ken Moon, chairman of the FSB’s Wessex region, which covers Hampshire and West Sussex, said: ‘Until economic growth is more robust, increasing interest rates to tackle inflation could stall the recovery and so the Monetary Policy Committee must stand firm and keep interest rates at 0.5 per cent until the recovery is on a firmer footing.’