Economists have been left surprised today (Tuesday) by the news that the UK rate of inflation fell to 2.6% in June, according to the Office for National Statistics (ONS).

Measured by the Consumers Prices Index (CPI), inflation was at 2.9% in May, having been steadily increasing since October 2016 as a result of the UK’s decision to leave the European Union. The ONS said lower petrol and diesel prices, which fell for a fourth consecutive month in June, were the primary reason behind the overall drop.

Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:

“While the fall in inflation in June will surprise many, consumer price growth is likely to resume its upward trend in the coming months, with the elevated cost of imported raw materials still filtering through supply chains.

“However, it remains likely that the current spell of high inflation will be relatively short lived with moderating price growth at the factory gate indicating that inflationary pressures in the supply chain are starting to ease. If this trend continues as we expect, inflation is likely to peak sooner rather than later

More must also be done to ease the burden of high upfront business costs which continue to impede firm’s ability to invest, recruit and grow.”

If you’d like to find out more about our business finance facilities to help you with the upfront business costs, we’d love to be able to help. Why not give Regency a ring today on 0161 280 4010, drop us an email at lynnew@regencyfactors.com or browse our website for more details on how our facilities work