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Business Finances Need Help: UK Inflation Hits 6-Month High

The UK inflation rate unexpectedly rose in August to 2.7%, the highest level in six months.


As has been long expected, UK inflation has soared up to its highest point in six months. The economy and business sectors continue to battle against Brexit anxiety; this new development will not be welcomed. Higher prices on consumer goods could lead to a further tightening of purse strings across the country. With the sector struggling to raise profit as is, this further strain on spending behaviour could bring forward more insolvencies and financial difficulty for the high street.

Economists had not expected such a shift in trajectory, with the Consumer Prices Index forecast to rise to just  2.4 per cent. The cost of living and doing business will soon rise, with higher prices for essential commodities placing further strain on household budgets.

This has not come at a good time for Britons, with wages finally increasing and placing consumers in a more improved financial position. This twist in inflationary pressure is bound to reverse the progress, with pay packets unlikely to cover higher living expenses.

The Office for National Statistics, who released the data, revealed that recent increases in theatre tickets and other recreational activities had driven the new inflationary rise. Some economists have suggested the “uptick” could be temporary, but time will have to tell.


Wages are still rising more than inflation, with data last week showing wages, excluding bonuses, grew by 2.9% in the three months to July.

Whether inflation soars or plummets, business owners must be prepared for the fallout. Cash flow should be strong and not weakened by late and bad payers who only mean to undermine a business’ success. Business owners need credit monitored and protected, and debt recovered. This is where the Credit Protection Association really comes into its own.

Alongside our debt recovery service, it is our online credit monitoring systems that our Members at CPA benefit the most from. The credit monitoring services protect Members from bad payers who could destroy credit and threaten future prospects. Our credit reports, credit information, directorship databases and County Court data all reduce the risk of running a business while protecting them from the next economic disaster.


Please call us on 0330 053 9263 to discuss how CPA can help your cashflow.
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The Latest Insolvencies to 19 Sep 2018

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