inflation Archives - WRLO Accountants

Higher than expected inflation underlines business challenges

WRLO Accountants — Tue, 04 Mar 2025 17:22:17 +0000

The higher-than-expected rise in the rate of inflation underlines the real challenges businesses face, according to the British Chambers of Commerce (BCC). The consumer prices index (CPI) measure of inflation rose to 3% in January, up from 2.5% in December, according to the Office for National Statistics (ONS). Economists had expected inflation to rise to 2.8% in January. The increase was driven by rises in the prices of air fares, food and non-alcoholic drinks and private school fees, added the ONS. The data underlines the inflationary pressures in the economy right now and the ‘real challenges businesses are facing’, said Stuart Morrison, Research Manager at the British Chambers of Commerce. He continued: ‘Firms are having to deal with significant cost burdens which threaten to fuel inflation further. Within weeks they’ll be facing the hikes in national insurance contributions and the minimum wage. ‘The inflation landscape, coupled with ongoing global risks and the looming threat of US tariffs, is likely to give the Bank of England more food for thought, as it charts a cautionary path to further interest rate cuts. ‘Businesses are crying out for cost-pressures to be eased so that they can invest, recruit and trade – driving forward […]

The post Higher than expected inflation underlines business challenges appeared first on WRLO Accountants.

UK’s investment rates worse than every other G7 country

WRLO Accountants — Fri, 05 Jul 2024 16:55:31 +0000

The UK has the lowest rates of investment of any other country in the G7, according to analysis by the Institute for Public Policy Research (IPPR). It found that, compared to the USA, Germany, France, Italy, Canada and Japan, the UK was in last place for business investment in 2022. The IPPR also revealed that the UK has been bottom of the G7 league for investment in 24 out of the last 30 years. It said that the UK has the lowest rates of investment of any G7 economy, and that it ranks 28th out of 31 Organisation for Economic Co-operation and Development (OECD) countries for business investment. According to the IPPR, countries such as Hungary, Slovenia and Latvia attract higher levels of private sector investment than the UK as a percentage of GDP. Dr George Dibb, Associate Director for Economic Policy at the IPPR, said: ‘If the economy is an engine, then investment is its fuel. The UK’s dire productivity performance is the single biggest driver of our dire living standards. Without resources flowing into new investment, it’s hard to see how UK economic performance can improve.’ Internet link: IPPR website

The post UK’s investment rates worse than every other G7 country appeared first on WRLO Accountants.

Inflation falls after UK moves out of recession

WRLO Accountants — Thu, 06 Jun 2024 19:54:33 +0000

The rate of UK inflation fell to 2.3% in the year to April, according to the Office for National Statistics (ONS). Inflation is down from 3.2% in March and is the lowest level since September 2021. However, it is still above the Bank of England’s 2% target. The drop was driven by falling gas and electricity prices after the energy price cap was lowered by Ofgem. The drop in inflation followed news that the UK economy grew by 0.6% between January and March, according to the ONS. It means that the country officially emerged from recession with growth led by the services sector. Despite the improving outlook, the Bank of England held interest rates at 5.25% for the sixth month in a row. The British Chambers of Commerce (BCC) said the fall in the rate of inflation was positive news that increased the likelihood of an interest rate cut in the coming months. David Bharier, Head of Research at the BCC, added: ‘Uncertainty will persist with global conflicts and trade wars threatening supply chains. Real wage costs also continue to grow – our most recent business survey found almost half of firms expect their prices to rise over the next […]

The post Inflation falls after UK moves out of recession appeared first on WRLO Accountants.