Fiscal intervention essential as inflation hits 40-year high - Chamber
Fiscal intervention from the government to help businesses is now essential after inflation reached its highest level in 40 years, business leaders said today.
The rate of inflation shot up to nine per cent in April - its highest level since comparable readings in 1982.
According to the Office for National Statistics (ONS), there was a broad hike in prices for everyday goods and services last month.
Almost three-quarters of the increase was accounted for by the 54 per cent increase in the energy price cap.
Greater Birmingham Chambers of Commerce said businesses must be given breathing space to continue their recovery from the Covid-19 pandemic.
Policy advisor Erin Henwood (pictured) said: “Following the Bank of England 's recent warning of a potential recession, it is no surprise that inflation has today hit 9 per cent.
“The highest level for 40 years, the figures have been driven rapidly upwards by external shocks such as war in Ukraine and supply chain issues exacerbated by lockdowns in China.
“According to the Q1 Quarterly Business Report, a third of firms in Greater Birmingham had concerns about inflation and the potential impact that this could have on their business.
“Given that thousands of businesses are already operating with very slim profit margins, this is a concerning trend that we will be continuing to monitor in this quarter's survey.
“With an interest rate hike on the horizon, urgent fiscal intervention from Government is now essential in order to reduce the cost of doing business.
“This is a vital step needed to give firms the necessary breathing space to continue their recovery and realise their plans to grow. ”