IPSE: inflation drop is welcome short-term boost for freelancers
The sharp drop in inflation in January will be welcome for most self-employed people, IPSE (the Association of Independent Professionals and the Self-Employed) has said.
IPSE’s comments came after the ONS (Office for National Statistics) announced today that inflation has fallen to 1.8 per cent – the lowest level in two years. It is a drop from 2.1 per cent in December 2018. The ONS asserted that one of the main factors behind the drop was the continued fall in oil prices.
IPSE’s Economic Policy Adviser, Ryan Barnett, commented: “Today’s announcement from the Bank of England that inflation has fallen from 2.1 per cent in December to 1.8 per cent in January will be welcomed by most freelancers. It is the second drop in two months – again driven by the fall in oil prices. The ONS has suggested that this downward movement is also due to energy regulator OfGem bringing in a price cap on energy bills.
“In the short-term, this drop in inflation is a welcome boost for the self-employed and businesses alike in otherwise difficult times. This is because dipping inflation means lower costs for businesses. The self-employed in particular can benefit from lower travel costs and smaller energy bills, thus reducing their overheads.
“While this is welcome for most freelancers in the short-term, we must also consider the poor economic growth statistics released on Monday amid continued uncertainty about Brexit. Taken together, falling inflation and poor growth statistics could be a sign of the economy weakening in the face of declining global economic performance and Brexit turbulence.
“For the self-employed and businesses generally, more must be done to ensure a smooth exit from the EU. Freelancers and other businesses urgently need clarity – for themselves and for the sake of the economy.”