Inflation remains a concern for West businesses despite November’s small decrease, according to the region’s largest business organisation.
The annual rate of inflation dropped from 2.2% to 2.1% last month as falls in the cost of food, gas and electricity prices took effect.
But Phil Smith, pictured, managing director of Business West, which runs the Swindon Initiative, said businesses would barely notice the drop against the continued rise in other input costs.
“Inflation remains a concern and the UK’s rate of inflation remains higher than many other major economies, being considerably higher than the US and the Eurozone,” he said.
“The MPC (Bank of England’s monetary policy committee) must continue with its two-pronged approach of providing forward guidance on low interest rates alongside keeping inflation low, to provide a stable backdrop for businesses to drive a sustainable recovery.”
The only bright spot for businesses was that the small reduction in inflation may ease pay rise pressures that businesses will face from their employees struggling with the relentless rise in the cost of living, said Mr Smith.