Fall in Inflation Relief for Business Finances
24th May 2018.
Official inflation figures came in below expectations, making an imminent interest rate rise less likely and sending sterling to a fresh low for the year.
Personal and business finances look set to see some relief as it has been reported that the annual consumer prices index dropped to 2.4 percent in April. This is the lowest reading since March last year, according to new data from the Office for National Statistics. This is bad news for the stock market, as Sterling has slipped once again, bringing it to its lowest since December 21. It is unequivocally good news however for households and business owners, who will benefit from low-interest rates and enlivened spending behaviour.
Lower inflation should have a bold impact on consumer confidence, giving penny-pinching shoppers lower prices to catch their attention. The high street has been recently suffering from the so-called retail apocalypse, where low customer turnout and even lower profits have forced retailers into CVAs and even insolvency. Whether this new economic turn has an effect on consumers or not, the Credit Protection Association has always provided financial assistance to its members. Our debt recovery services free up cash flow for our vulnerable members, while our credit management products keep financial power protected and harnessed.
The Treasury welcomed the drop in inflation. “Inflation falling and real wages on the rise means more money in people’s pockets,” Mel Stride, financial secretary to the Treasury, said. The Resolution Foundation think tank struck a cautious note. Stephen Clarke, its senior economic analyst, said: “The rise in inflation this month is driven by price rises closer to home — like cultural activities, hotels and restaurants — emphasising the fact that domestic cost pressures are building.”
With inflationary pressure easing, businesses can now focus on other areas. The government recently launched a review into how to boost business productivity, seeing it as key to raising economic standards.
The review will help companies to embrace new technology and improved management techniques to push up wages and profits, the government said.
Productivity, or output per hour, is seen as key to raising economic prospects and living standards. Improving it allows companies to produce more goods or services with fewer workers or hours worked. Britain is about 30 percent less productive than Germany and America. The business department said it wants to add £100 billion to the economy by tackling the issue.
It has been a difficult few months for households, and an even harder few for businesses. Brexit uncertainty continues to linger, and the resulting low consumer confidence and morale has had a negative effect on British high streets.
The few items that consumers do loosen their purse strings for are purchased via online retailers such as Asos and Amazon. Large online discounts and prompt delivery options threaten the cultural pleasure once associated with shopping on the high street. Low inflation should keep prices at a low, and bring conscientious consumers back to their favourite stores.
At the Credit Protection Association, many of our members have suffered from low profits and diminished consumer interest. Some business owners have even considered insolvency or CVAs as a way to retain some semblance of their brand. Thankfully there is is an alternative, and our services provide our members with a lifeline, rather than a death sentence. Our debt recovery and credit management services provide the financial freedom for our members while conducting thorough credit checks to keep this freedom protected.
We fight to the tooth for our members, particularly those who have suffered from low profits and sluggish consumer interest. We’ve recently created a new department within our company dedicated to getting our members rightly compensated in accordance with the Late Payment of Commercial Debts (Interest) Act 1998, unlocking hidden cash and potential in our members and their prospects.
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
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