PSE, the Association of Independent Professionals and the Self-Employed, has welcomed today’s news that the rate of inflation has fallen to 2.5 percent. Contributor Tom Purvis, IPSE’s Political and Economic Advisor.
ONS data released data showed that inflation has continued to decline, reaching a level not seen since March 2017. The main causes for the fall were clothing and footwear. Tobacco also made a significant contribution to the drop, because although the government increased tax duty on it in March 2017, it imposed no further rise in March 2018.
Tom Purvis, IPSE’s Political and Economic Advisor, commented: “The fall in the rate of inflation will be welcome for self-employed people and many others across the UK. This is particularly because wages are now starting to outpace inflation for the first time since the EU referendum.
“The fact that inflation is quickly falling towards the Bank of England’s two percent target may also mean that the interest rate will now not need to be increased as quickly. This would be welcome news for the many self-employed people who at some point need to borrow cash for their businesses.
“It’s not all good news for the self-employed, however, because the ONS also revealed that transport costs increased more in March 2018 than March 2017. Self-employed people typically spend more time commuting, both to win new clients and complete projects for them. As a result, any rise in transport costs is bound to affect them disproportionately compared to other groups.”
