Skip To The Main Content
19 January 2016

FSB reacts to small rise in inflation

Commenting on the Consumer Price Index (CPI) which rose to 0.2% in December, John Allan, National Chairman for the Federation of Small Businesses, said:

“This is the first time in a year that inflation has risen above 0.1%. However, with more businesses finding their operational costs rising, we would urge the Bank of England to remain cautious when considering the right time to raise interest rates. The longer term economic outlook is uncertain as the effects of low oil prices and slowing growth in China start to feed through.

“In addition, recent FSB research shows business confidence across the country is patchy. Investment intentions are weaker now than a year ago, which is likely to reflect concerns over a number of regulatory and tax changes that will hit businesses in the coming months - including the introduction of the National Living Wage, pensions auto-enrolment and changes to the taxing of dividends.”