Reacting to the latest ONS data on inflation, Stuart Morrison, Research Manager at the British Chambers of Commerce, said:

“Businesses will be pleased to see that inflation remains close to target, despite a small rise in the CPI rate last month.

“An increase was expected, with our own forecast suggesting inflation of 2.3% in Q4 2024, with the trend in lower rates likely to persist. This has already brought a welcome interest rate cut from the Bank of England earlier this month, and we expect at least one further reduction this year.

“Concern about inflation among the businesses we represent has been falling since the beginning of the year. However, with nearly half of firms (49%) still citing it as a worry, companies remain vigilant about the impact of price rises.

“Business confidence has increased in recent months and all eyes will be on tomorrow’s GDP data for a clearer picture of the UK economy’s trajectory.”