Inflation cooling but price pressures persist – Chamber

The UK rate of inflation has fallen to its lowest level for two-and-a-half years but remains a top concern for many firms, business leaders said today.

Figures released by the Office for National Statistics (ONS) this morning revealed inflation fell to 3.2 per cent in March, down from 3.4 per cent as price rises continued to slow.

This is the lowest level inflation has been at since September 2021.

Inflation for food and non-alcoholic drinks dipped to 4 per cent for the month, from 5 per cent in February and is now at its lowest level since November 2021.

The increased slowdown was partly driven by a fall in meat prices and lower rises for bread and cereals, the ONS said.

Cameron Uppal (pictured), policy and public affairs advisor at Greater Birmingham Chambers of Commerce, said: “Many local businesses across Greater Birmingham will be very glad to see inflation falling to its lowest level for two and a half years, with the downward trajectory continuing to head towards the Government's 2 per cent target.

“That said, some will have been hoping for a more significant decrease, and it’s important to note the stark differences between various sectors of the economy.

“While the price rises seen across most types of food products eased between February and March, the hospitality sector in particular continues to struggle with the legacy of inflation for food and non-alcoholic drinks hitting 19.2 per cent in March last year.

“The general sentiment amongst the local business community is that we are not quite out of the woods yet. Our latest Quarterly Business Report indicates that inflation is still more of a concern than three months ago for around a third of firms.

“All eyes will now be on the Bank of England to see whether today's inflation figures will translate to lower interest rates. It might be the case that the Monetary Policy Committee decides to hold off until we know the impact of the energy price cap reduction from the figures released next month.”

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