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FSB reacts to rise in the Consumer Price Index PDF Print E-mail
Tuesday, 18 August 2015

Commenting on the Consumer Price Index (CPI) in the year to August, which rose to 0.1%, John Allan, National Chairman of the Federation of Small Businesses (FSB) said:

“The CPI has hovered around this level since the start of the year, providing businesses with a steady period of low inflation. Many small firms are benefitting from the continued downward pressure on oil prices and increased consumer spending. Household disposable income has been boosted by several factors including low food prices, rising real wages and the strong pound which is making imports cheaper.

“Recent FSB research shows that small business confidence remains robust, resulting in increased investment in machinery, staff training and IT. The Bank of England has indicated that it expects inflation to remain muted in the near-term and plans to keep interest rates steady until at least late 2015. When the time does come to move rates, we urge the Bank to raise gradually to allow businesses time to adjust.”

(Source - FSB Comment)  

 
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