Unemployment figures welcome but inflation still threatens stability - Cable

9.39.30pm GMT Wed 17th Jan 2007

Responding to the latest unemployment figures, Liberal Democrat Shadow Chancellor, Vince Cable MP said:

"It is welcome that there has been some improvement after months of rising unemployment.

"However, the fact that average earnings are now rising as fast as retail inflation makes the likelihood of a further interest rate rise soon more likely, which will not help the employment outlook.

"Britain is now one of the worst offenders on inflation in the developed world alongside countries like Estonia and Latvia.

"The Bank of England is clearly struggling to get a grip on inflation, at a time when there is a weakening in the general outlook for the economy."

Applicability: this item refers to the UK.