Today’s small drop in the rate of inflation to 2.6% could simply be the ‘calm before the storm’ for businesses, according to Shropshire Chamber of Commerce.

Chief executive Ruth Ross said: “Any fall in the rate of inflation is of course welcome in the current economic climate. But Shropshire businesses fear that there are far choppier waters ahead this year.

“We have to remember that this latest data covers the period before the double whammy of minimum wage and national insurance rises had kicked in.

“Businesses across many sectors in Shropshire are already telling us they are putting up their prices, as they battle with rising employment costs.   

“The British Chambers of Commerce’s latest survey showed business concern about inflation at 53%, up from the previous quarter. This is echoed in our own economic surveys here in Shropshire.

“The rising global trade war will also heap further price pressure on businesses and consumers.”

She added: “As the BCC’s research team said today, inflationary pressures mean the Bank of England is likely to remain cautious over more interest rate cuts – just when firms are keen for some financial respite.”