Stuart Morrison, Research Manager at the British Chambers of Commerce, said: “A further easing of inflation, to three per cent in January, will be cautiously welcomed by businesses. Firms will be hoping it strengthens the case for another interest rate cut by the Bank of England soon.  

“CPI may be at its lowest level for nearly a year, but that headline figure is only part of the story. Inflation concerns among businesses persist, with 56 per cent of firms citing it as a worry in our latest survey. Businesses are facing huge price pressures which are squeezing confidence, stalling investment and holding back recruitment.  

“Next month’s Spring Statement will provide businesses with an economic outlook from the OBR and government. But firms are clear, easing inflation must be matched by action to cut the cost of doing business. That must include business rates reform, reducing energy costs and making it cheaper to export. Only then, will businesses be able to fully turbocharge economic growth.”