Easing inflation provides business confidence boost - Chamber

UK inflation fell to 2.3 per cent in April, which should provide businesses with a degree of confidence to plan ahead, business leaders said today.

The drop in the consumer prices index (CPI), down from 3.2 per cent in March, was driven by easing energy and food costs.

Inflation is now at its lowest level in nearly three years, although the decline was smaller than some economists had predicted.

Greater Birmingham business leaders are hopeful the news will provide firms with a confidence boost and improve chances of an interest rates cut in the coming months.

Cameron Uppal (pictured), policy and public affairs advisor at Greater Birmingham Chambers of Commerce, said: “Greater Birmingham businesses will welcome this morning’s news that inflation has fallen to its lowest level in three years.

“The rate is moving further towards the Government’s 2 per cent target, which should provide local businesses with a level of confidence to plan forward.

“However, the sentiment amongst the local business community is that we are not quite out of the woods yet.

"The drop in April was smaller than forecast by many economists. In addition, according to our latest Quarterly Business Report, 29 per cent of businesses revealed that inflation was still more of a concern than three months ago.

“In light of this morning's figures all eyes will be on the Bank of England and whether there may be an upcoming cut to interest rates.

“The GBCC were pleased to welcome our members recently to a Bank of England roundtable, with a member of the Monetary Policy Committee in attendance, where members were able to express the costs pressures that they are experiencing.

“We will continue to advocate for the interest of our members and get their views heard by senior stakeholders and policy makers."