Freelancers get respite from unchanged inflation
Freelancers are breathing a sigh of relief after inflation in August failed to increase.
No change in the Consumer Prices Index (CPI) last month will be a boon to the two-thirds of the self-employed who were “seriously worried” their business costs would rise, said IPSE.
“These freelancers will be relieved to see that prices have actually been little affected by Brexit and the falling value of sterling,” said Lorence Nye, economics adviser at the Association of Independent Professionals and the Self-Employed (IPSE).
Less likely to welcome the inflation figures are those freelancers who travel abroad, as air fares were one of the main upward contributors.
The Office of National Statistics found that food prices were higher in August too, aside to a smaller fall in motor fuels than the same time a year ago.
However, these upward pressures were offset by smaller rises in the prices of alcohol, clothing and footwear than a year ago plus, crucially for freelancers; cheaper hotel rooms.
IPSE’s Mr Nye reflected: “The self-employed generally travel much further for work than their counterparts in employment, with hotel costs one of their biggest expenditures, so the fall in accommodation prices is good news.”
According to the ONS, the CPI rose by 0.6% in the year to August, which represents a “still relatively low” rate historically, yet it is above the rates recorded in 2015 and early 2016.