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FSB reacts to Consumer Price Index PDF Print E-mail
Tuesday, 14 July 2015

Commenting on today’s fall in the Consumer Price Index (CPI) for the year to June, now at 0.0%, John Allan, National Chairman of the Federation of Small Businesses (FSB), said:

“Today’s small drop in inflation, along with the recent decision to keep interest rates on hold, will help to maintain business confidence. Our research shows that small firms are currently in a robust mood. Businesses are benefitting from both lower costs and increased consumer spending as lower food prices and rising real wages boost households’ disposable income.

“The current economic landscape puts businesses in a good position to invest in machinery, IT and staff training – all vital elements to address the UK’s productivity gap. To maintain these buoyant levels of confidence, the Bank of England needs to remain vigilant to ensure that the UK does not slip into a prolonged period of deflation.”

(Source - FSB Comment)  

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