Inflation rate fall is welcome news

West & North Yorkshire Chamber of Commerce today welcomes the news that the headline rate of inflation has fallen to two per cent.

The data from the Office for National Statistics shows that the rate of inflation has fallen to within the Bank of England’s target of two per cent and that inflation is now is now at its lowest level in nearly three years.

However, the fact remains that Chamber members are yet to feel this decline in their day-to-day operations and that inflation remains one of the top external pressures that businesses large and small are facing.

Furthermore, Chamber economic forecasts expect inflation to nudge up slightly by the end of the year.

Mark Casci, head of policy and representation at West & North Yorkshire Chamber, said: “It is of course welcome to see the rate of inflation fall to within its target range.

“Businesses have been hit hard by the surge in costs they have had to deal with these past two years and the latest figure will add increased justification for a cut in interest rates.

“However, it should be remembered that this decline in inflation is not necessarily being felt by businesses who continually cite inflation as the chief external pressure that they are facing.

“Nationally our British Chamber of Commerce has a five-point plan to boost business confidence, including a green industrial strategy, better skills planning, business rate reform, improved relations with the EU and support for SMEs to embrace AI. 

“If we can deliver on these areas then our region’s business community can hopefully begin to see some light at the end of the tunnel.”