Financial support needed as inflation hits 30-year high - Chamber

The government must consider further financial interventions to help businesses after inflation rose by seven per cent, business leaders said today.

Prices rose at their fastest rate for 30 years, driven by a sharp increase in petrol and diesel prices, according to the Office for National Statistics.

The consumer prices index (CPI) rose from 6.2 per cent in February and was higher than expected, with economists predicting a rate of 6.7 per cent.

Inflation remains at its highest point since March 1992, when it stood at 7.1 per cent.

Erin Henwood (pictured), policy advisor at Greater Birmingham Chambers of Commerce, said: “Today 's inflation figures are yet another blow to the UK 's deteriorating economic outlook.

“The figures follow earlier announcements this week from the Office for National Statistics, which revealed that UK workers are seeing the biggest fall in living standards for eight years and that the UK 's economic growth slowed to just 0.1 per cent in February.

“Though our Q1 Quarterly Business Report revealed high levels of business confidence across the Greater Birmingham area, firms are becoming increasingly concerned by soaring levels of inflation as they battle an abundance of cost pressures.

“The Government must consider urgent fiscal intervention to avoid any further erosion of business confidence, enabling firms to invest, recruit and grow, and thus help return the UK economy to its pre-pandemic strength. ”

Find out more about the Q1 Quarterly Business Report Briefing focusing on Investment in Greater Birmingham.