Doncaster Chamber Reacts to Latest UK Inflation Data
Reacting to the latest inflation data from The Office for National Statistics (ONS), Daniel Fell, CEO at Doncaster Chamber, said:
“Today’s Consumer Prices Index (CPI) rate of 6.7%, while proving stubborn, shows that inflation is continuing to gradually ease and that the economic headwinds facing Docnaster businesses are lessening slightly. Producer Price Inflation (PPI) fell by 2.3%. This should give the Bank of England pause for thought with their interest rate decision tomorrow.
“Inflation remains the top concern for businesses across our surveys, and firms will be concerned that fuel prices are the largest contributor to the CPI rate today. But the rising interest rate has also been a growing problem for many over the last year.
"Recent research by the British Chambers of Commerce’s Insight Unit found that 46% of companies said current interest rates are having a negative impact, as costs for borrowing and mortgages go up. Smaller firms, such as the ones that characterise Doncaster’s economy, and those in the consumer facing sector are disproportionately impacted by this.
“The BCC’s latest economic forecast expects that growth for the next two years will remain subdued. Businesses will now be worried that any further rises in the interest rate could diminish consumer demand and make investment even harder. However, the headline news about inflation falling is positive and businesses will be pleased to see a steadying of the ship. This, coupled with hopefully good news about the future of Doncaster Sheffield Airport, should give the local economy a much needed lift today.”