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​UK inflation dip masks uneven picture for businesses, warns Atradius


UK inflation may have eased in July 2026, but the headline improvement masks a much more uneven picture for businesses, according to Atradius.

“The relief of a dip in inflation is likely to be short-lived.  Bank Rate remains at 3.75%, energy bills rose sharply in July, and volatile oil prices could drive inflation back up.  Cost pressures have eased due to lower fuel costs, but they have not disappeared,” comments James Burgess, Head of Commercial, Atradius.

"Lower inflation may offer some breathing room, but businesses are still feeling the squeeze from energy, wages, financing and supply chain costs.  We are also seeing a mixed picture across supply-chain disruption and trade credit insurance claims, underlining how uneven conditions remain,” continues Burgess.  “Protecting liquidity and managing customer credit risk will be essential for resilience – and will determine which businesses are best placed to grow when conditions improve.”


Atradius warns that the inflation dip should not be mistaken for a broad-based easing of pressure.  For many firms, margins remain squeezed and the cost of doing business continues to be elevated.

For SMEs in particular, the message is clear: falling inflation may be welcome news, but it does not mean the wider trading environment has suddenly become easier.

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