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17 May 2016

Ease in inflation suggests need for rates caution, says FSB

Small businesses urge interest rates caution as the Consumer Price Index (CPI) falls month on month to 0.3% in April, down from 0.5% in March. Mike Cherry, National Chairman of the Federation of Small Businesses, says:

“The present low level of inflation is helping to mitigate other challenges facing small businesses. The cost of doing business is increasing, with policy measures like the National Living Wage and auto-enrolment pensions presenting a real challenge for many smaller firms.

“FSB data shows small business confidence at the lowest level since 2013. Given today’s figures and the challenging economic outlook, we urge the Bank of England to remain cautious when considering whether to raise interest rates in the near future.”

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