Inflation easing to 2.6% encouraging for business

Richard Blackmore from The East Midlands Chamber

The East Midlands Chamber has said pressure on firms will be alleviated slightly as inflation reached its lowest level since March 2025.

The latest estimated figure from the Office for National Statistics covers the 12 months to June 2026, down from 2.8% in May.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “With our Quarterly Economic Survey for Q2 of 2026 having shown inflation to be the greatest concern of East Midlands firms and forecasts from economists earlier in the year having anticipated multiple hikes over the coming months, the level easing to 2.6% will be welcome news for business.

“The Middle East conflict has added significant cost burden to firms, especially around the price of energy and while the situation is ongoing, inflation – still above the Bank of England’s 2% target – is widely expected to creep up again. The 2% inflation target needs to be reached but with so much uncertainty, policymakers need to mitigate against the risk of inflation soaring again and hindering business growth.

“Mitigating means prioritising supportive measures to help business, as those we have outlined in the Framework for Growth – the publication we put together at the end of 2025. Among a series of asks, the document calls for a widening of energy cost relief packages and a full root and branch review of business rates. Addressing these areas would help soften the impact of any inflation hikes by bringing down other significant cost pressures on business and help unlock growth in the East Midlands.”