SME costs remain above inflation

A survey conducted by the Forum of Private Business (FPB) reveals that sme costs have risen by 4.7% in 2014.

This is despite the Consumer Price Index (CPI) rate of inflation falling from 2.7% in September 2013 to 1.2% in September 2014. The key factors in increased sme costs were reported to be energy, transport and staffing. But some of the ‘costs’ were actually as a result of investment in business development with over three quarters of those surveyed saying they were paying more for marketing.

Tony Jadzevics, Director at Evans Weir, reflected on the survey saying “The FPB survey this time last year told a similar story but it is exasperated in 2014 by the news that the CPI inflation rate has been decreasing to its lowest rate in over 5 years”. He continued “It is of little surprise to anyone that energy, transport and staffing costs remain stubbornly high and I think we have to accept that with energy and transport in particular this is the ‘new norm’, so businesses will have to adapt”.

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