Commenting on today’s statistics which show Consumer Prices Index (CPI) dropping from 5.2% to 4.5%, the biggest month on month fall for 16 years, Grahame Smith, Scottish Trades Union Congress (STUC) General Secretary said:
“These figures confirm that inflation is set to fall rapidly over the coming months and provide another warning that deflation could quickly become the real danger.
“With unemployment rising and survey evidence profoundly worrying, today’s statistics suggest that the Bank of England has scope to cut rates again in December. Lower rates together with the anticipated fiscal stimulus do not constitute an economic panacea, but such measures will help cushion the fall into recession”.
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