No relief for business as inflation remains sky-high
October 19, 2022
Commenting on the Office for National Statistics inflation figures for September 2022, Head of Research, David Bharier, said:
“Inflation is back up at a 40-year high with little sign that the pressure will ease any time soon. Our research shows clearly that this is wrecking the growth prospects of many firms as they struggle not to pass on costs.
“Food, housing, transport, and household goods and services all remain major contributors to the increase.
“Producer Price Inflation, running at 20%, remains near record highs, and shows the scale of input price rises businesses are having to absorb.
“With the Bank of England set to raise interest rates even further in the coming weeks, businesses now find themselves caught in a pincer movement between rising input and borrowing costs.
“The economy looks to be on the cusp of recession, and with the Chancellor signalling that energy bill support may not go beyond six months the outlook is bleak for many firms.
“It is now critical that Ministers listen to the Chamber of Commerce Network to understand the extent of the problems piling up at firms’ doors.
“Businesses will need to see a clear long-term economic plan to provide a stable environment to invest, alongside specific measures that relieve unprecedented inflationary pressures.”
More detail on the ONS data can be found here.