Responding to the latest inflation data, published by the Office for National Statistics this morning, Stuart Morrison, Research Manager at the British Chambers of Commerce said:
“Another inflation rise in August, with CPI hitting 3.1%, confirms the worrying price pressures looming over the UK economy right now.
“The cost of doing business, and the cost of living, are two sides of the same coin.
“Our latest survey of almost 5,000 firms shows inflation is now the main concern, cited by 66% of firms. Meanwhile, over half (52%) told us fuel costs are pushing up their prices.
“High domestic costs and geopolitical headwinds are combining to create choppy inflationary waters for businesses to navigate.
“Our latest economic forecast suggests CPI will rise further over the final few months of the year, driven by oil price volatility and the ongoing conflict in the Middle East. As a result, higher domestic food costs, are a possibility.
“It’s crucial the Chancellor looks to ease business cost burdens at next month’s Budget. We’re calling for a targeted tax reduction package to ease energy and business rate pressures for all firms.
“Interest rates remain the Bank of England’s primary tool to try and bring inflation back to target. A snap poll of the BCC’s Economic Advisory Council found unanimous support for another rate hold tomorrow lunchtime, with all members anticipating the base rate will stay at 3.75%.”
Read the full ONS data here
More details about the BCC’s Economic Advisory Council and a list of members can be found here