Mid Wales business chief welcomes 'encouraging' inflation move
A business chief has welcomed last week's official inflation figures which showed an unexpected steep fall in the UK’s rate of inflation after months of disappointing data on the rising cost of living.
The Consumer Prices Index (CPI) fell to 7.9% last month, down from 8.7% in May and its lowest rate since March 2022, as food price inflation eased and fuel prices dropped sharply year-on-year.
Paul Butterworth, CEO at Chambers Wales South East, South West and Mid, said: “The drop in inflation to 7.9% is an encouraging step in the right direction for Welsh businesses.
“The quarter two figures show that inflation was more of a concern to two thirds of businesses in Wales than in the previous quarter, so the latest figures are welcome news following months of stagnant rates.
“While this gives businesses in mid Wales hope that inflation and the cost of living is beginning to ease with some optimism of economic growth, businesses continue to be under pressure to review prices of goods and services due to labour costs.
"In our Quarterly Economic Survey, 73% of businesses in Wales are now citing labour costs as a key concern, 70% concerned about energy costs and a further 52% concerned about raw material costs.
“As inflation continues to reduce, businesses will enter the next half year and 2024 with increased confidence to invest in skills, training and job creation to contribute to a more prosperous Wales.”
