Inflation measures gradually easing - Chamber

A surprise drop in inflation will be welcomed by businesses as a step in the right direction, Greater Birmingham business leaders said today.

UK inflation unexpectedly fell in August to 6.7 per cent despite a sharp rise in average fuel prices for motorists.

The Office for National Statistics (ONS) said the annual inflation rate as measured by the consumer prices index (CPI) continued to drop for the sixth month in a row from a reading of 6.8% in July.

Economists had forecast a modest increase to 7 per cent.

Cameron Uppal (pictured), policy and public affairs advisor at Greater Birmingham Chambers of Commerce, said: “It is promising to see that the rate of inflation has continued to fall, with the lowest level we've seen in more than a year.

“Our latest Quarterly Business Report revealed a third of businesses saidinflation was more of a concern than three months ago, so there is still some way to go.

“With the Autumn Budget fast approaching we are continuing to lobby the Government on tackling the ingrained labour market challenges, easing supply chain disruption with our European counterparts, and look at encouraging investment projects which will go some way in continuing to drive down the rate of CPI.”