IPSE welcomes falling inflation, but warns for the future
- 16 Jan 2018
IPSE, the Association of Independent Professionals and the Self Employed, has responded to ONS data released today revealing that inflation has fallen to three per cent. This represents a fall of 0.1 per cent from the figures released in November.
One of the main factors behind the December rate of inflation is the increase in duties for goods such as alcohol and tobacco. Furniture and household goods also played a key role in the price increases. Three per cent inflation is, however, still above initial forecasts, which suggested it would have fallen more significantly by now.
Tom Purvis, IPSE’s Economic Policy Advisor commented: “While the fall in inflation is welcome, it is still concerning that it remains above the two per cent target set by the Bank of England.
“Duties, not transport, were one of the biggest factors behind the current inflation rate, which may be welcome news to the self-employed. However, there may be less positive news next month when transport inflation is expected because of the rise in train fares, as well as the price of oil reaching almost $70 a barrel.
“But if inflation continues to fall, there may at least be some silver lining to the barrage of attacks the self-employed community have faced recently.
“It is time for the Government to step up and make sure that in the coming months, self-employed people regain some of the confidence they lost over the last year. It needs to not only improve the support it offers the self-employed, but also secure an EU exit deal that works for this vital sector of our labour market.
“In 2018, earnings continue to lag behind inflation, but with the recent news on productivity, hopefully this can be reversed over the course of the year. In the meantime, however, the Bank of England must get on top of inflation so that the gap between earnings and price increases can be narrowed.”
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