Raj Kandola, director of external affairs at Greater Birmingham Chambers of Commerce, said: “It’s reassuring to see the headline rate of inflation fall to the Bank of England’s target rate for the first time in almost three years.
“Nevertheless, service inflation remains a sticking point, coupled with strong wage growth - all of which makes an imminent interest rate cut unlikely, especially in the midst of a General Election campaign. Early analysis from our latest Quarterly Business Report survey underlines the persistent cost pressures local firms continue to face.
“Whichever party forms the next Government will inherit a challenging fiscal landscape, so reducing cost pressures for businesses and unlocking firm-led investment will need to figure highly in growth plans moving forward.”
