Andy Searle, EMEA Leader, Consumer Products comments on ONS February inflation data

“Today’s higher-than-expected drop in inflation is welcome news for many, but the annual consumer price inflation rate still remains higher than most would want. With wage growth keeping pace, the pressure for businesses continues. Companies are grappling with a range of different pressures, from higher labour costs from National Insurance rises and wage growth, to squeezed margins from inflation and stubbornly low consumer confidence. 
 
“Unwilling to pass costs onto consumers in a time of inflation and without the option to create volume growth, many businesses are still heavily relying on passing costs to manufacturers while consumers’ confidence remains subdued. At the moment, the only constant is uncertainty, and businesses need to be increasingly agile to get through this period of increased pressure.”