The latest inflation data shows a rise to 2.2%.

Paul Butterworth, CEO at Chambers Wales South East, South West and Mid, said:

“Today’s inflation data shows a small rise as expected, from 2% to 2.2%, and businesses across Wales will be pleased that it is only a small rise.

“Inflation remains close to the Bank of England’s target and low inflation has already led to a welcome cut in interest rates and should allow for further reductions this year to further stimulate the economy.

“Businesses in Wales will be considering today’s news and have an eye on tomorrow’s GDP data to understand the current direction of travel for economic growth and plan accordingly.”

Stuart Morrison, Research Manager at the British Chambers of Commerce, said:

“Businesses will be pleased to see that inflation remains close to target, despite a small rise in the CPI rate last month.

“An increase was expected, with our own forecast suggesting inflation of 2.3% in Q4 2024, and the trend in lower rates likely to persist.  This has already brought a welcome interest rate cut from the Bank of England earlier this month, and we expect at least one further reduction this year.

“Concern about inflation among the businesses we represent has been falling since the beginning of the year. However, with nearly half of firms (49%) still citing it as a worry, companies remain vigilant about the impact of price rises.

“Business confidence has increased in recent months and all eyes will be on tomorrow’s GDP data for a clearer picture of the UK economy’s trajectory.”