Freelancers cautious over slowing inflation
IPSE, the Association of Independent Professionals and the Self Employed, has today (Tuesday 15 November) reacted to the UK's Consumer Price Index, which fell to 0.9 per cent in October, down 0.1 cent from September.
Lorence Nye, IPSE Economic Adviser, said: “The slowing rate of inflation will be seen as a positive thing for most consumers, businesses and policymakers – however freelancers will be more wary.
“Many freelancers have been very concerned about rising inflation and this has led to a dampening effect on how they are viewing their business performance over the coming year.
“IPSE’s latest Freelancer Confidence Survey showed nearly two-thirds believe their costs will increase in the next year. And despite headline inflation slowing – including a decrease in fuel cost – underlying data shows that some freelancers’ fears are arguably well founded, with the costs of manufactured goods rising rapidly in October.
“Meanwhile, the Bank of England is likely to be welcoming a slowing inflation rate as it means they maintain some room to maneuverer their monetary policy. A continued rapid increase in inflation will mean that there would be more pressure on the Bank to further increase interest rates.”