Reacting to the latest inflation data from the ONS, Alex Veitch, Director of Policy at the British Chambers of Commerce, said:

“Today’s news that consumer price inflation continued to ease in July is encouraging. However, this comes off the back of months of high prices which have hit business hard. Many firms have yet to see the cost of raw materials fall.

“Businesses tell us that confidence is improving slightly as inflationary pressures ease. However, our latest quarterly economic survey showed most companies reported no improvement to sales, cash flow, or investment.

“High interest rates are now of real concern to firms. Investment across all sectors is suffering because of the cost-of-borrowing. Businesses need to be confident that interest rates have reached their peak.”