Whiteley advisor urges businesses to 'tread carefully' despite inflation dropping for second consecutive month

Despite the index being at a 40-year high, the rate of inflation fell from 10.7 per cent in November to 10.5 per cent last month, according to the Office for National Statistics, which reports the data. The decrease could potentially show it has peaked sooner than expected, but entrepreneurs have been urged to take caution.

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Colin Bielckus, a business advisor from Whiteley who runs The Outsourced Finance Director says that businesses should ‘tread carefully’ as prices are still seemingly rising in other areas. Even though some costs are decreasing – fuel and clothing prices – others such as coach and air fares, and food in hospitality sectors are rising.

Mr Bieickus said: ‘While this is a good sign, and I’m hopeful that we’re over the worst of it at least, it’s important that we still tread carefully as business owners to avoid making costly mistakes. Now is the most important time to look at the markets, look at your costs and make sure you’re getting the best deal to set yourself up well as inflation, hopefully, continues to drop.’

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The advisor added inflation is roughly eight per cent above the Bank of England’s target. He said one of the main concerns raised to him is labour shortages, but apprenticeships can mitigate this.

‘Think about how you’ll survive against your competitors,’ Mr Bieickus added. ‘The chances are, this won’t get better straight away. It’s essential to keep the current mindset and ensure your business will survive and be successful both in the current climate and as inflation eases.’