Inflation rose to 2.7 per cent in August amidst bigger-than-usual seasonal increases in sea and air fares and higher theatre admission prices, according to data from the Office for National Statistics.
Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), fears that a no-deal Brexit could push inflation even higher as he told the media: “The strong growth in producer prices indicates that inflationary pressures further down the supply chain remain significant and could lift inflation higher in the coming months. However, the upward pressure on prices remains transitory, and inflation should resume its ease back towards target once the impact of the recent increase in oil prices drops out of the calculation.
“The possibility of a disorderly Brexit is the key risk to the UK’s outlook for inflation as it could result in a substantial decline in sterling, which could significantly increase inflation and exacerbate the financial squeeze on consumers and businesses.”
With UK inflation cutting disposable income, the weaker pound and a business landscape fraught with uncertainty, it is understandable that business owners are concerned. However, due to the size and nature of their businesses, SMEs have the advantage of being able to be flexible and quick to respond to changing market conditions.
The key is to partner with the right specialist adviser who will guide you on your strategy and assist in making those all-important business decisions that will have the greatest impact on future success.
At Beavis Morgan, we know that running your own business can be very rewarding, provided the right structures are in place. We are well versed in working with SMEs and owner-managed businesses of different sizes across a range of industry sectors, so you can rely on our detailed understanding of the specific kinds of issues that can arise, and you can count on our expertise and ability to provide the right solutions.
For more information about how we can help you and your business, contact Steve Govey or your usual Beavis Morgan Partner.