According to the latest figures released by the Office for National Statistics, UK inflation eased to 3% in January, down from 3.4% in December. Lower food, fuel and airfare prices appear to have been the biggest contributors to the reduction.

It’s important to remember this doesn’t mean prices are falling; they are just rising more slowly. Businesses still dealing with higher wages, energy and supplier costs will know that firsthand.

The combination of softer inflation and a slowdown in wage growth has increased expectations that the Bank of England will cut interest rates again when its Monetary Policy Committee (MPC) meets in March.

The latest inflation figure may suggest some better news for businesses over the coming months. Perhaps an easing of costs generally, or some relief from interest costs, particularly if your business has an overdraft or variable-rate loans.

See: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/latest