Inflation holds steady

INFLATION was unchanged last month at 2.7%, according to official figures.

The Office for National Statistics said upward pressure came from air fares, although this was offset by a downward contribution from petrol and diesel prices.

The ONS said the latest data continued the trend of broadly steady inflation, on the Consumer Prices Index measure (CPI), seen since the spring.

The Retail Prices Index (RPI), which takes into account housing costs, was down to 3.2% from 3.3% in August.

Christian Spence, head of business intelligence at Greater Manchester Chamber of Commerce, said: “Of greater concern to businesses today will be the RPI figure of 3.2%. This is the figure which will now be used to increase the multiplier on next year’s business rates bills.

“This means that businesses in Greater Manchester will have to pay an additional £35m of this tax in the year from April 2014, a figure equivalent to the cost of around 1,500 employees on the average Greater Manchester wage. We have consistently reported our members’ views to local authorities and national government that the current business rate system is broken and is in need of fundamental reform.

“The government’s current policy of delaying the 2013 revaluation until 2015 means that businesses are paying business rates as a proportion of their rental values at the height of the property boom in 2008.”