Decisive action needed despite easing of inflation - Chamber

Decisive action is now required in the upcoming Spring budget to tackle cost pressures despite the easing of inflation, business leaders said today.

UK inflation eased slightly in January - falling to 10.1 per cent from 10.5 per cent.

The reduction is bigger than many economists predicted and is the latest sign that the UK has seen the worst of inflation after it reached a 41-year high of 11.1 per cent in October.

According to the Office for National 's Statistics (ONS), the drop was largely due to the price of fuel and cost of restaurants and hotels slowing.

But this was offset by rising prices of alcohol and tobacco.

The ONS said food inflation also remained high in January at 16.7 per cent.

Cameron Uppal (pictured), policy and public affairs advisor of Greater Birmingham Chamber of Commerce said: “Many city analysts will be hoping that we 've passed the peak of inflation as the CPI rate fell for the third consecutive month.

“Nevertheless, local firms are still being hammered by rocketing energy bills, rising interest rates, trade disruption and labour market challenges - as evidenced in our latest Quarterly Business Report.

“Decisive action is now required and the Government needs to use the upcoming Spring Budget to demonstrate their commitment to tackling these crippling cost pressures which are inhibiting growth. ”

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