Following the publication of the country's inflation figures, the British Chambers of Commerce (BCC) is calling for the monetary policy committee (MPC) to show restraint.

According to the BCC, the rise in inflation to three per cent is the result of a surge in the cost of energy, which has effectively acted to constrict consumer spending.

Indeed, the BCC has highlighted that consumer price inflation, which excludes energy costs, food, alcohol and tobacco is lower at 1.8 per cent.

"We continue to believe that, unless there is firm evidence of stronger wage pressures, the MPC should refrain from further interest rate increases," said David Kern, economic adviser at the BCC.

"Oil prices have fallen sharply in recent months and the MPC's own comments suggest that they expect inflation to fall later in the year," he added.

In related news, prime minister Tony Blair yesterday confirmed that inflation was under control, reinforcing the view that inflation will decrease over the course of 2007.