'Eyewatering ' inflation figures underline need for more business support - Chamber

Businesses need urgent support to deal with rising cost pressures after UK inflation surged to its highest rate in more than a decade, business leaders said today.

The Consumer Price Index (CPI) measure of inflation shot up to 5.1 per cent in November - up from 4.2 per cent the month before - according to the Office for National Statistics,

Rising transport and energy costs, as well as clothing and footwear, drove the price rise.

The Bank of England had projected that inflation would hit five per cent in Spring next year.

Erin Henwood (pictured), policy advisor at Greater Birmingham Chambers of Commerce, said: “The latest eyewatering inflation figures will no doubt concern businesses across the country, who are already facing massive overheads and battling an ongoing pandemic.

“The data from our latest Quarterly Business Report revealed that many local businesses are concerned by rising prices and the impact that new Plan B measures will have on economic activity, and are understandably looking to policymakers for a much-needed lifeline during this challenging time.

“As such, the outcome of tomorrow 's Bank of England 's Monetary Policy Committee meeting will be watched with bated breath, as businesses wait to hear whether action will be taken to tighten monetary policy via higher interest rates.

“With inflation once again hitting a new 10-year high this month, it is crucial that cost pressures for businesses are alleviated - whether that is via the Bank of England or through new support measures from the Government - to ensure that they get to the other side of the pandemic.

“Our 'Plan B - A Blueprint for Business Support ' briefing paper details the steps we believe regional and national stakeholders need to take to help businesses, particularly before next month 's inflation levels show potentially another increase. ”

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