FSB urges interest rate caution after inflation rise

8 years ago

FSB urges interest rate caution after inflation rise

Commenting on the Consumer Price Index (CPI) which rose to 0.5% in March, Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), said:

“Small firms are currently dealing with a raft of challenges, including the National Living Wage which came into effect this month, driving up costs and driving down modest profit. A recent FSB survey [1] showed small business confidence hovering at its lowest level since 2013. Despite inflation edging up last month, our members welcome this ongoing period of low inflation which has helped to keep other operating costs manageable.

“Given today’s figures and the challenging economic outlook, we urge the Bank of England to remain cautious when considering whether to raise interest rates at its meeting later this week.”

Ends

Notes to Editors

1) Small Business Index Q1 2016. 18 March 2016

2) Office for National Statistics, Consumer Price Inflation, March 2016. 12 April 2016.

About the FSB

As experts in business, FSB offers members a wide range of vital business services, including advice, financial expertise, support and a powerful voice in Government. Its aim is to help smaller businesses achieve their ambitions. More information is available at www.fsb.org.uk. You can follow us on twitter @fsb_policy.

About Federation of Small Businesses

The Federation of Small Businesses is the UK's largest campaigning pressure group promoting and protecting the interests of the self-employed and owners of small firms. Formed in 1974, it now has around 200,000 members across 33 regions and 188 branches.