SCOTTISH Chambers of Commerce has cautioned against a swift rise in benchmark Data published yesterday by the
A rise in clothing and footwear prices between May and June, in contrast to the usual fall between these two months, played a significant part in the jump in annual CPI inflation.
Increases in food and non-alcoholic beverage prices and rises in air fares also pushed annual inflation higher.
Sterling surged as financial markets took the view that the higher-than-expected inflation rate increased the chances of a rise in
The pound was trading at
She highlighted the fact that annual CPI inflation was still below the two per cent target set for the Old Lady of
Appearing before the Treasury Select Committee, the Bank Governor said: "I am aware of [the] CPI number, but I would only draw attention [to the fact] that, in [our] May forecast, inflation ... only gets back to two per
He added: "Inflation expectations are extremely well-anchored in the
Touching on his comments last month about the possibility of an earlier-than-expected rise in rates,
Ms Cameron, however, appealed for restraint on interest rates. And she urged the Bank not to use base rates to take the heat out of the
She said: "Whilst a rise in inflation has been experienced, it is important to note that the rate remains below the Bank of
Ms Cameron added: "Further statistics continue to show the cross- border asymmetry in housing prices, with house price annual inflation at 11 per cent in
"Therefore, it is imperative for the Scottish economy that the Bank of
"With the majority of the evidence pointing to the economy still seeing healthy growth and the unemployment rate coming down markedly, we believe that the first interest rate hike from 0.5 per cent to 0.75 per cent is more likely to occur in late 2014 than early 2015, but it is a tight call."
He said: "Even if the Bank does start edging interest rates up before the end of 2014, we still expect them to only reach 1.25 per cent by the end of 2015, two per cent by the end of 2016 and three per cent by the end of 2017."
SCOTTISH Chambers of Commerce has cautioned against a swift rise in benchmark
Data published yesterday by the