The British Chambers of Commerce (BCC) has warned that the country is still experiencing a wide range of economic difficulties - even if steadily lowering inflation will be a positive development.
Indeed, the latest data from the Office for National Statistics indicates that the annual producer output inflation fell down from two per cent in June to just 1.7 per cent in July.
Chief economist at the BCC David Kern asserted that this is a positive development overall, noting that deceleration has been continuing steadily since last September and that the annual rate is as low as it has been since 2009.
He added that the consumer price index is also expected to keep falling, which will be equally good news for the economy.
"The economic situation remains difficult and businesses as well as consumers are facing major challenges," the expert commented, suggesting that the government "should act more forcefully to create the right conditions for businesses to grow".