Inflation Relief For Business Owners

17th January 2018.

The surge in inflation appears to be past its peak as price rises across the economy slowed to 3 percent in December. This will be appreciated by retailers, who need a boost in consumer spending since it slumped to a record-low last year. Inflation can be a challenging beast to keep in check and any dips can be hurtful to the economy’s smallest businesses. We encourage all our members at the Credit Protection Association to keep your eye on your books, your prices and your customers.

Overall customer-price inflation has slipped from 3.1 percent to 3 percent in the last six months. Food cost inflation stands at 4.1 percent with price rises weakening for baked goods, butter, fish, and olive oil.

Economists hope the fall in inflation will continue, with prices currently rising more quickly than wages.

There are signs of price pressure easing on businesses as inflation for imported materials also slowed from 6.7pc to 4.5pc, indicating the squeeze from the fall in the pound may be becoming less severe.

Economists believe inflation will ease moderately over the year, but factors such as the tightened labour market and wage increases will still input pressure on consumers and businesses.

Even the smallest increase in inflation can be the most hurtful for small businesses. Controlled inflation is a clear sign of a healthy economy, but this can be hard to achieve. Inflationary pressure seems to have eased in the UK for the present, relieving the pressure on SME balance sheets. However, we encourage our members to keep business in check. Inflation increases are generally offset by larger companies through hefty savings that cushion the blow. The Credit Protection Association offers a range of credit management and debt recovery products to businesses who need to free up cash flow. In case inflation unsteadies once again it would be wise for every business to prepare themselves, and their cash flow.

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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Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.

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