A fall in inflation for September to 2.2 per cent from 2.5 per cent in August has been greeted with caution by business leaders.
Birmingham Chamber of Commerce says that despite the fall, predicted rises in fuel, utility bills and food will affect future inflation figures which are likely to rise.
Chamber President Michael Ward said: "Inflation does put businesses under pressure, and cuts into margins. It is imperative that the Government acts decisively to create the best possible environment for jobs and growth.
"The latest inflation figures which are at their lowest for the last three years are still being driven by the rising cost of utility bills as well as the price of petrol at the pump which despite the deferred duty is still too high and affects transport costs and the cost of consumer goods.
"Although inflation hurts business, low interest rates are benefiting them, especially for manufacturers in the West Midlands."