Today’s fall in inflation to 4.8 per cent from 5 per cent in October has been greeted with caution by business leaders.
Birmingham Chamber of Commerce says that despite the fall, inflation is still running at twice the level targeted by Government.
Chamber President Michael Ward said: “The drop is not what we anticipated and it still remains high.
“It does put businesses under pressure, and cuts into margins. It is imperative that the Government acts decisively to create the best possible environment for jobs and growth.
“Inflation is still being driven by the rising cost of electricity as well as the price of petrol at the pump which despite the deferred duty is still too high and affects transport costs and the cost of consumer goods.
“We are renewing our call on the Bank of England Monetary Policy Committee to hold its nerve and not increase interest rates. Although inflation hurts business, low interest rates are benefiting them, especially the worst hit manufacturers.”
