Latest data from the Office for National Statistics has revealed a sharp drop in inflation, news that will be very much welcomed by the self-employed.
The figures show that inflation fell to 1.8 per cent – the lowest level in two years. In December, this figure was at 2.1 per cent.
Ryan Barnett, Economic Policy Adviser for the Association of Independent Professionals and the Self-Employed (IPSE), commented on the latest ONS data: “Today’s announcement from the Bank of England that inflation has fallen from 2.1 per cent in December to 1.8 per cent in January will be welcomed by most freelancers. It is the second drop in two months – again driven by the fall in oil prices. The ONS has suggested that this downward movement is also due to energy regulator OfGem bringing in a price cap on energy bills.
“In the short-term, this drop in inflation is a welcome boost for the self-employed and businesses alike in otherwise difficult times. This is because dipping inflation means lower costs for businesses. The self-employed in particular can benefit from lower travel costs and smaller energy bills, thus reducing their overheads.”
He added, “While this is welcome for most freelancers in the short-term, we must also consider the poor economic growth statistics released on Monday amid continued uncertainty about Brexit. Taken together, falling inflation and poor growth statistics could be a sign of the economy weakening in the face of declining global economic performance and Brexit turbulence.
“For the self-employed and businesses generally, more must be done to ensure a smooth exit from the EU. Freelancers and other businesses urgently need clarity – for themselves and for the sake of the economy.”
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