Tories accuse government of fuelling inflation

ODN

Sir Mel Stride, Shadow Chancellor said ''Putting taxes on businesses, borrowing a lot of money and spending a lot of money has kept inflation higher than it otherwise would have been.'' It comes as UK inflation rose to a near 18-month high in June as food prices surged for the third month running, according to official figures. Report by Gluszczykm. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn

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00:00I think it's due to the government's choices so if you put a lot of tax on

00:05business some of that tax will be passed on by way of higher prices if you

00:08borrow a lot of money and spend a lot of money that's an inflationary pressure

00:12if you give high wage given to high wage demands without requirements for

00:19greater efficiencies and productivities you stoke inflation and that's what we're

00:23seeing here and what we now are looking at is a very uncertain summer as we come

00:27up to the budget in the autumn where most people are now unfortunately I'm afraid

00:30expecting tax increases most people have been slightly surprised that we've had a

00:350.2 percent increase in inflation I think the market was expecting inflation to

00:39remain at the same level so that is not a good sign it appears that inflation

00:44coming down is much stickier than had been originally expected and that is

00:49really because of the decisions to this government took putting taxes on businesses

00:52being passed on by way of higher prices borrowing a lot of money spending a lot

00:56of money stoking inflation which has kept inflation higher than it would otherwise

01:01have been

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