Commenting on the news that CPI inflation was unchanged at 0.6% in August 2016, Scottish Chambers of Commerce (SCC) have again warned of further inflationary pressures in the months to come and called for action to address business costs. Liz Cameron, Chief Executive of SCC, said:
"Last month, we warned that the current low rate of inflation is likely to come under pressure due to higher import costs in the wake of the fall in the value of the pound following the EU referendum decision. This month, we have seen the prices of goods bought and sold by manufacturers rise by 0.8%, the second monthly increase in succession and further evidence that cost increases are likely to feed through sooner or later into consumer prices.
"At the moment, businesses seem to be absorbing some of this cost and that is likely to have a negative impact on investment decisions. This is all the more reason for our Governments at a UK and Scottish level to use their upcoming Autumn Statement and Budget respectively to lower core business costs and to boost competitiveness across as wide a range of businesses as possible.
"In particular, the potential cost rises for many businesses that will come as a result of next year's Business Rates revaluation must be tackled now before the damage is done next April, risking making Scotland an even less competitive place to do business."