Rate rises failing to curb ‘record levels’ of inflation

CONCERTED action is needed to bring inflation under control, not another increase in the Bank of England interest rate.

That was the view expressed by the umbrella organisation for Hampshire businesses this week in calling for a, “long-term government economic strategy”.

Hampshire Chamber Chief Executive and Executive Chairman Ross McNally said after Thursday’s announcement: “Inflation continues to persist at record levels, above 10 percent, despite what have now been 12 consecutive interest rate rises since December 2021. That’s because of factors such as energy and food prices increasing at their fastest rates for decades.

“When their operating and borrowing costs go up, businesses face an unenviable choice about how much they can absorb and how much they have to pass on to their customers.

Pressures

“The government urgently needs to break the inflationary cycle through concerted action and collaboration to address immediate supply side pressures. That will reduce the need for any more painful rate rises.

“Then, once there is clear evidence that inflation is at last coming under control, businesses need to see a long-term government economic strategy that prioritises stability and growth.”

PICTURED: Hampshire Chamber Chief Executive Ross McNally