Owners and senior managers of businesses will have been relieved to see that inflation dropped to 2.6% on the back of lower petrol prices. Leading economists  including the Bank of England had expected inflation to continue to creep up over the next few months, putting pressure on living standards as salaries failed to keep up. Businesses had probably started to factor in an interest rate increase later in the year but this may not happen until 2018 now. 

Keeping inflation under control is important for many businesses who struggle to pass on price rises to their customers and then do not have sufficient profits to offer employees above inflation salary increases. A difficult situation all round for businesses that has been made a little easier to manage on the back of the latest inflation figures.