FSB reacts to Consumer Price Index

8 years ago

FSB reacts to Consumer Price Index

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, 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 benefiting 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.”

Media Contact:

Emma Smailes

Emma.Smailes@fsb.org.uk

07917 628918

About Federation of Small Businesses

The Federation of Small Businesses is the UK's largest campaigning pressure group promoting and protecting the interests of the self-employed and owners of small firms. Formed in 1974, it now has around 200,000 members across 33 regions and 188 branches.