Freelancers fear rising inflation
IPSE has today (Tuesday 16 August) reacted to the UK's Consumer Price Index, which rose to 0.6 per cent in July, up from 0.5 per cent in June 2016.
IPSE Economic Adviser, Lorence Nye, commented: “Another rise in inflation, particularly in fuel prices, makes it more expensive to run a freelance business, as this group typically needs to travel much further for work than a traditional employees.
“According to IPSE research released in July, the majority of freelancers expect business costs to increase in the next 12 months - today’s figures are proof that those fears are well founded. Rising inflation will add pressures to the UK’s flexible workforce – a vital part of our economy in a time of uncertainty and change.
“Although the Bank of England is not yet close to its two per cent inflation target, it has predicted that the rate will increase past that point by 2018. Therefore, they should practise caution in order to prevent disproportionately pushing up business costs, which would have a dampening effect on the economy.”