“Today’s slight dip in the inflation rate is welcome but it’s not a game-changer. Underlying price pressures within the economy are clear following the Budget. The path ahead on interest rates this year is likely to remain slow and cautious.

“As our research clearly shows, firms are having to make difficult decisions to manage the upcoming rises in national insurance contributions and the minimum wage. Our latest survey shows most firms expect to raise their prices in the next three months, while business confidence has dipped to 2022 levels. Labour cost pressures have grown significantly and are particularly acute in the hospitality sector.

“We need quick government action to ease the cost pressures companies are facing and create new opportunities for investment. Ministers should focus on accelerating business rates reform, giving infrastructure projects the green light and boosting exports.”