UK Politics

Liberal Democratic Party: Inflation danger from slow recovery says Cable

Press Release   •   Jan 20, 2010 10:51 GMT

“Any recovery in the economy is still very fragile, it would be all too easy to destroy it by putting the brakes on too soon," said the Liberal Democrat Shadow Chancellor.

Commenting on today’s inflation figures showing the Consumer Price Index surged to 2.9% in December, Vince Cable said:

“These figures are almost certainly a temporary spike.

“With inflation expected to fall quickly, it seems unlikely that the Bank of England would want to raise interest rates in the near future.

“Any recovery in the economy is still very fragile, it would be all too easy to destroy it by putting the brakes on too soon.

“However, the MPC still needs to be acutely aware of the longer term inflationary dangers.

“With the world economy improving at a much quicker rate than the UK, there is a danger that high food and energy prices could hit our economy before it has had chance to recover.”