Inflation eases as focus now shifts to budget

The UK inflation rate dropped to 3.6 per cent in the year to October – a move cautiously welcomed by business leaders in Greater Birmingham.

According to the Office for National Statistics (ONS), falling gas and electricity prices were the main drivers for the fall in annual inflation this month.

That was alongside hotels, where monthly prices fell by 2.2 per cent, compared with a fall of 0.2 per cent a year ago.

However, food price inflation is still on the rise at 4.9 per cent.

Speaking about the figures, Paige Bowyer (pictured), policy and research analyst at Greater Birmingham Chambers of Commerce, said: “The drop in inflation to 3.6 per cent suggests inflation may now be past its peak, however firms across Greater Birmingham won’t be relaxing just yet with the Budget announcement next week.

“Inflation remains the second biggest cost pressure in our latest Quarterly Business Report, and businesses are still struggling with high input and employment costs.

“The Budget next week needs to provide stability and ease the cost burden for firms so they can plan, invest and grow with confidence.”

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