Inflation easing expected, but action needed to reduce tax burdens and trade frictions

Inflation for the month of May eased to 3.4 per cent as many expected, but business leaders in greater Birmingham are calling the government for an actionable plan to reduce tax burdens and trade frictions.

Data from the Office for National Statistics revealed that food prices increased by 4.4 per cent over the past year. Costs of furniture and household goods have also increased.

Transportation price increases, which rose over the Easter bank holidays in April, have slowed.

Commenting on the inflation, Greater Birmingham Chambers of Commerce head of policy Emily Stubbs (pictured) said the Bank of England will likely hold interest rates tomorrow.

She said: "As firms continue to face mounting cost pressures, UK inflation unsurprisingly remains well above the bank of England's 2 per cent target, and higher than elsewhere in Europe.

"Looking ahead, many - including the bank of England - will also be concerned about the potential impact of conflict in the Middle East on supply chains and energy prices.

"With this uncertainty in mind, the Bank may likely decide to hold interest rates at 4.25 per cent tomorrow, meaning borrowing costs for business will remain high.

"To boost confidence and unlock investment, businesses need government to produce a plan for easing their tax burdens and further reducing global trade frictions."

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Businesses in Greater Birmingham can receive further support in global trade by joining the Greater Birmingham Global Chamber of Commerce and signing up to the Exporting Starts Here programme.