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FSB reacts as UK inflation rate turns negative PDF Print E-mail
Tuesday, 19 May 2015

Commenting on today’s the Consumer Price Index (CPI) of -0.1, which has fallen into deflation for the first time in over half a century (55 years), John Allan, National FSB Chairman, said:

“Today’s CPI figure underlines the importance of further measures to support small businesses in the upcoming emergency budget on the 8 July.

“Although a sustained period of deflation would not be helpful to the UK’s small businesses, we believe the fall in the inflation rate is only temporary. Inflation is likely to bounce back again later this year when oil and food prices start to pick up, although continuing uncertainty over the eurozone may make business cautious about the future.

“The Bank of England has been right to keep the economy stable with low interest rates and should continue this approach for the foreseeable future. This will encourage business to make the investments in machinery, IT and staff training needed to address the UK’s ongoing productivity gap.”

(Source - FSB Comment)  

 
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