“Today’s figures confirm inflation is continuing to slowly head in the right direction. That’s good news for both consumers and businesses.

“However, a lot of uncertainty remains among the firms we speak to. Our most recent Quarterly Economic Survey showed almost half of firms in fact expect their prices to rise over the next three months. Labour costs are cited as the main driver, but increasing political and global uncertainty is becoming a key factor.

“Businesses will be keen to see how this data translates into changes on interest rate policy. More than a third of SMEs we surveyed at the start of the year have seen increased borrowing costs because of the current interest rate.

“Business conditions more generally remain challenging, and firms need to see a clear long-term vision for the UK economy from politicians.”