Bradford business chiefs are bracing themselves for yet another interest rate increase next month.

The comment comes as a new report on Business trends in the UK by one of the worlds leading accountancy firms has warned of a potential double interest hike.

The report, by BDO Business Trends, shows that the Inflation Index is at its second highest in over two years.

The Inflation index is calculated as a weighted average of the results of all the UK's main business surveys.

In June the Index went up to 109.3 from 106 the previous month.

Tim Clarke, partner at BDO in Yorkshire, said: "The BDO inflation Index has been consistently high since the end of 2006 and indeed has shot up this month.

"We think that this month's report shows that an interest rate rise in July cannot be avoided."

He also predicted a further hike in November as almost certain.' Commenting on the report, Mike Cartwright of the Bradford Chamber of Commerce said: "The instability is not good for planning and confidence.

"However we are resigned to a rate increase in July.

"We don't yet know about how confident our members are in passing on cost increases.

"Our survey results are out a week after the Monetary Policy Committee sits but another rise later in the year would put many firms under the cosh."