Responding to the latest inflation data published by the Office for National Statistics, Caterina Batog, Research and Economics Analyst at the British Chambers of Commerce, said:
“Ahead of next week’s Budget, today’s data showing CPI rose to 3.5% in September is a stark reminder of the growing price pressures in the UK economy. Once again fuel prices were the main driver behind a slightly higher than expected rise.
“Inflation is casting a dark shadow over the businesses we represent, who are already struggling with a succession of high costs.
“Our latest survey of over 4,000 firms shows inflation remains their top concern, cited by 60% of responding businesses. With the ongoing Middle East conflict, high energy costs remain a clear risk to even higher inflation, and the Bank of England will be watching closely ahead of its next decision.
“It’s two years since CPI was below the 2% target. With interest rates the primary tool available to control inflation, today’s data will add more pressure on the MPC to consider a rate rise next month.
“This high inflation landscape makes it even more crucial that the Chancellor uses his Budget to cut the cost of doing business. A targeted tax reduction package to ease energy and business rates costs would help unlock the sustained growth we all want to see.”
Read the full ONS data here