The latest inflation figures show CPI has fallen to 3.0% in December, from 3.1% in November.

Downward contributions from transport prices such as air fares, and recreational products such as video games, were some of the factors which led to an overall fall in the rate.

Commenting on the latest inflation figures, Liz Cameron, Chief Executive, Scottish Chambers of Commerce, said:

“Today’s figures show inflation dropping to 3% in December, signalling an ease for the first time since June 2017 and bringing the CPI rate below the near six year high it reached in November.

“Whilst it is too early to say whether this is the start of a long-term reduction in the rate of inflation, the reduced rate will begin to ease some of the pressure on household budgets. However, food inflation still remains at a near four year high and petrol prices rose sharply as the continued impact of Brexit and rising commodity prices and raw materials passed through supply chains. Data from Scottish Chambers of Commerce Network’s Economic Indicator also shows signs of companies potentially seeking to increase prices as it becomes more difficult for firms to absorb increasing cost pressures.

“Wage growth continues to lag well behind and it will be some time before this translates into people having more money in their pockets.

“The Monetary Policy Committee should be in no rush for another rate hike.  Keeping interest rates steady is the preferred option for business.”