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Small firm inflation rises 2.2%

The cost of running a small business rose by 2.2% in the second quarter of the year, ending six months of deflation, according to research released in the latest Business Inflation Guide by MORE TH>N BUSINESS.

The guide showed that prices increased in 13 of the 20 small business expenditure categories, including a 3.5% increase in labour costs and a 3.2% rise in raw material costs.

However, small firms' costs in 2009 in the second quarter remain about 2.1% lower than a year earlier due to the impact of deflation in late 2008 and early 2009.

"The return to inflationary conditions means growth is returning to the economy, but we are not out of the woods yet. There are still many small business owners struggling to survive, which is why it's incredibly important to react quickly to this latest inflation indicator," said Mike Bowman, head of MORE TH>N BUSINESS.

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Post Date: September 21st, 2009