Business leaders hail ‘incredibly welcome’ inflation fall

Greater Birmingham business leaders have hailed the sharp fall in inflation to 4.6 per cent as “incredibly welcome” news for hard-pressed firms across the region battling spiralling costs.

Cameron Uppal (pictured), Policy and Public Affairs Advisor for the Greater Birmingham Chambers of Commerce, said the inflation fall in the year to October marked the lowest rate of price increases for two years since November 2021.

And he called on the Government to use the forthcoming Autumn Budget to further ease the pressures on firms, including reforms of business rates.

Today’s news marks a major boost for Rishi Sunak’s Government which has delivered on its pledge to halve inflation this year from 10.7 per cent at the end of 2022.

Cameron Uppal said: “It is incredibly welcome news for local businesses in the Greater Birmingham area this morning to hear that the rate of inflation has fallen as sharply as it has. Given the challenging landscape that businesses and households have faced with spiralling costs over the last two years, this morning’s figures represent the lowest rate of price increases in two years and should provide businesses with the confidence to plan with more certainty.

“We can see the extent to which the local business community have been concerned by recent high figures of inflation as in our latest Quarterly Business Report a third of businesses revealed that inflation was more of a concern than three months ago.

“With ongoing trouble in the Middle East and high interest rates, hopefully today’s figures mark a trajectory towards the Government’s 2 per cent target on inflation and provide much-needed stability for businesses to operate in.”

New data shows that today’s fall is mainly down to lower energy prices, with gas and electricity costs down sharply compared to a year ago.

Cameron Uppal added: “With the Autumn Budget fast approaching we are continuing to lobby the Government on tackling underlying cost pressures firms are facing coupled with entrenched recruitment challenges, easing supply chain disruption with our European counterparts and advocating business rate reforms.”