Firms feeling the strain of inflationary pressures – Chamber

A rise in inflation to 3 per cent further adds to the mounting cost pressure facing businesses across the country, Greater Birmingham business leader said today.

The surprise 0.5 per cent increase in January took inflation to a 10-month high, according to data from the Office for National Statistics.

The ONS said plane fares, rising food costs and a sharp jump in private school fees all contributed to higher living costs. 

The cost of food and non-alcoholic drinks increased, particularly meat, bread and cereals.

The price of meat and bread both increased by 2.3 per cent year-on-year.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “Today's data only highlights the mounting cost pressures facing businesses across the country - and the Chancellor's national insurance contribution increases will only add to the strain.

"Our Quarterly Business Report consistently finds that labour costs are already the most persistent source of cost pressures on Greater Birmingham businesses - something yesterday's wage data is yet another reminder of.

“We published additional research earlier this month which found that six in 10 local businesses are anticipating having to increase their prices further to mitigate the impact of the Autumn Budget.

"Businesses desperately need some of these cost pressures eased in order to unlock investment and drive economic growth.

"The Bank of England is likely to continue proceeding cautiously with further interest rate cuts in the coming months, as it navigates the inflation landscape amid ongoing global risks and the impact of potential US tariffs."