Calm Before The Inflation Storm 

“For businesses across the UK, today’s inflation data represents the calm before the storm. 

“CPI of 3% in February shows an economy yet to be impacted by the shock of the Middle East conflict, with fuel prices falling. But our forecast published after the unrest began, shows that the war will delay the previously expected slowdown in inflation. 

“UK firms are particularly exposed to the economic impact of the crisis in the Middle East as our electricity prices are tightly tethered to global gas prices. This will feed directly into higher costs and renewed inflationary pressure in the months to come.  

“The cost of living and the cost of doing business are two sides of the same coin. The government must continue to keep all options on the table to help firms deal with rising energy bills. At the same time, tackling other cost pressures, from business rates to national insurance, must remain a key priority.”