Inflation fell, for the second month in a row, to 2.6% in the UK in March, but the British Chambers of Commerce is warning this could be the "calm before the storm".
The new figure from the Office for National Statistics marks a further fall from the rate for the year to February, which was 2.8%.
The BBC reports falling petrol prices drove inflation down by more than expected in March, but experts are warning the fall is likely to to only be temporary.
Analysts say UK inflation is expected to spike from July with rising bills and growing business costs taking effect.
While chancellor Rachel Reeves said the drop is a "sign" the government's plan is working, the British Chambers of Commerce (BCC) is less optimistic.
Stuart Morrison, research manager at BCC, said: “A small drop in the rate of inflation is always welcome. However, businesses fear it is the calm before the storm over the months ahead.
“Today’s data for March, covers a period before the double whammy of minimum wage and national insurance rises. Businesses are already telling us they are putting up their prices, as they battle with rising employment costs.
“Our latest survey showed business concern about inflation at 53%, up from the previous quarter. The rising global trade war will also heap further price pressure on businesses and consumers.
“Inflationary pressures mean the Bank of England is likely to remain cautious over more interest rate cuts – just when firms are keen for some financial respite.
“Businesses desperately need a lifeline from policymakers. We need to see a tax roadmap, giving firms an idea of when business rate and national insurance pressures will ease. Ministers should also focus on infrastructure and exports as a clear path to business growth in these challenging times.”
Rachel Reeves said "wages growing faster than prices and positive growth figures" are encouraging but added that there is still "more to be done".
She went on: "I know many families are still struggling with the cost of living and this is an anxious time because of a changing world.
"That is why the government has boosted pay for three million people by increasing the minimum wage, frozen fuel duty and begun rolling out free breakfast clubs in primary schools."
However, Tory MP and shadow chancellor Mel Stride said inflation remains above target levels of 2% and is "set to increase further this year because of the chancellor's choices".