Consumer Price Inflation (CPI) is still higher than the government’s target, for the 20th month in a row.
Although inflation in the UK (as measured by CPI) has dropped to its lowest point since January 2008, to 2.2%, it’s still above the more sharply reduced 2% target hoped for by both the government and the City.
In news that will particularly sting small business owners, fuel and light costs have seen the steepest increases, going up by 9.7% over the last 12 months. Food has seen the next steepest increase at 7.8%, and in another blow to business owners, fares and other travel costs saw the third greatest increase in price at 6.4%.
On the reverse side of things, housing has seen the greatest deflation, with prices going down by 11.5%. Good news for anyone looking to buy premises, but cutting for those who already own property or who are now trapped into their lease.
The news has led to widespread speculation the government may not continue with its quantitive easing programme. But more crucial for business owners is the fact their costs just keep creeping up, despite perpetual assurances from the government it's trying to do more to help them.
We're not world class economists. We don't have the answer to inflation. But we do know more needs to be done to help the business that need it most, and fast.