Chamber News: Inflation Falls

Commenting on the latest inflation figures, Dr Brian Sloan, Chief Economist at Greater Manchester Chamber of Commerce, said: “Despite falling by 0.2% to 3.4% CPI inflation remains well above average earnings, so households will continue to be squeezed and the domestic economy will remain weak.

“Now that last year's VAT increase has dropped out of the inflation measure we are unlikely to see further substantial falls in inflation until later in the year, so the squeeze will continue for some time to come. Exports are picking up, but how much of is due to weaker Sterling caused by the Bank of England's Quantitative Easing programme is unclear. The regional economies are seeing the higher level of inflation caused by the programme without the benefits of growth.

“The lack of targeted infrastructure investment to support regional growth is becoming increasingly frustrating. We must see a commitment to the Northern Hub in tomorrow's Budget and confirmation that the private sector investment that will lead to the development of the Manchester Ship Canal through the Atlantic Gateway plans will not be impeded by unnecessary planning delays.”