"Today's higher-than-expected drop in inflation is
welcome news for many, but the annual consumer price inflation rate
still remains higher than most would want. With wage growth keeping
pace, the pressure for businesses continues. Companies are
grappling with a range of different pressures, from higher labour
costs from National Insurance rises and wage growth, to squeezed
margins from inflation and stubbornly low consumer
confidence.
"Unwilling to pass costs onto consumers in a time of
inflation and without the option to create volume growth, many
businesses are still heavily relying on passing costs to
manufacturers while consumers' confidence remains subdued. At
the moment, the only constant is uncertainty, and businesses need
to be increasingly agile to get through this period of increased
pressure."
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