Industry leaders called for interest rates to be kept on hold, arguing that growth in the international economy was weakening.
The Bank of England's monetary policy committee is tipped to raise rates from the current level of 4.75% to 5% when it meets later this week.
The Engineering Employers Federation, which represents manufacturing firms across the UK, said it believed the balance of evidence was against an increase.
There was limited evidence that higher inflation was feeding through to higher wages, while the expanding labour force gave more spare capacity to the economy, said the federation.
Chief economist Steve Radley said: "Whilst this may be the tightest call for some time, we believe that looking forward, the weight of evidence remains against a rise.
"While UK growth has been healthy, a slowdown in the international economy will sap some of its strength.
"An expanding labour force also means that the economy can continue to grow at a healthy pace without generating inflation."
Copyright (c) Press Association Ltd 2006, All Rights Reserved.
