Inflation eases slightly but cost pressures continue to bite - Chamber

The rate of inflation eased slightly but still remains above 10 per cent - as official figures show record costs for many essentially foods.

According to the Office for National Statistics (ONS), inflation fell to 10.1 per cent in the year to March from 10.4 per cent in February.

It was widely expected to fall below 10 per cent, but food prices remained stubbornly high, rising at their fastest rate in 45 years.

Soaring prices for bread, cereal and chocolate were major factors in inflation staying in double digits.

Cameron Uppal (pictured), policy and public affairs advisor at Greater Birmingham Chambers of Commerce, said: “Whilst it was promising to see inflation ease slightly this month, the Consumer Price Index (CPI) figure remains in double digits which will continue to have a destabilising impact as businesses struggle to deal with spiralling costs.

“Whilst fuel prices have fallen slightly, the impact of food inflation continues to bite and the impact is there for all to see on household bills and the knock on impact this has on consumer spending.

“Our latest Quarterly Business Report reveals the erosive impact inflationary costs are having on local businesses and all eyes will now turn to the Bank of England to see whether the MPC decide to further tighten monetary policy. ”