UK Inflation Rate at Highest Level in Four Years

Published: 3 July 2017 | Category:

The Office for National Statistics (ONS) has released figures showing that the UK’s rate of inflation in May 2017 had reached 2.7%. This was up from 2.3% in March, and represents the highest level in 4 years.

How has this happened?

There are a number of different factors that can be identified here, mostly in terms of rising prices for common goods. Electricity, food, clothing and air fare costs have all risen, as has vehicle excise duty.

The Bank of England has recently warned that inflation may peak at just below 3% this year, which is a far cry from their target of 2% for 2017. This could lead to a consumer spending squeeze, as inflation rises and real wages fall.

What does this mean for me and my business?

As the value of sterling takes a hit, businesses which trade internationally or have overseas suppliers are likely to feel the pressure. This could take many forms, whether it be increased costs for raw materials or lowered margins with customers abroad.

In circumstances such as these, it’s increasingly important that small businesses use every advantage at their disposal to ensure they’re making the most of their cashflow. This is where Turner & Turner can help.

As Chartered Accountants, Turner & Turner specialise in ensuring that your tax and financial affairs are in the best state possible. We can save you money on your tax bill, enabling you to put those savings back into your business and continue to grow.

To find out more about the range of services we offer, get in touch with one of our experienced staff today. You can call us on 01772 716 555 or fill in our online contact form, and well get back to you.