Inflation increase ‘deeply concerning’ for business – Chamber

The rise of inflation to 3.8 per cent today is deeply concerning for firms, according to Greater Birmingham business leaders.

This is the largest increase since January 2024 and the rates are slightly higher than the Bank of England predictions.

The Office for National Statistics (ONS) says the key driver was the rise in air fares, likely due to the timing of this year’s school holidays.

The cost of food has also continued to rise for the fourth month in a row, making the rate the highest it has been since February 2024. 

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce (GBCC) said: “Many firms will be deeply concerned by today's inflation figures, which show prices rising at the fastest rate since the start of 2024.

“Whilst there were some distortions as a result of summer holidays, of more concern are the underpinning factors, preventing inflation from returning to the 2 per cent target.

“These include a continued rise in food prices and persistent inflation in services.

“The Bank of England recently pointed to rises in employment costs - the result of increases in minimum wages and employer national insurance contributions - as significant contributors.

“This reflects what our members are telling us, that the price of doing business is simply going up and up.

“And whilst many will be hoping for further interest rate cuts, we are increasingly unlikely to get any before the end of the year if underlying pressures aren't addressed.

“Our message is clear: cost pressures on firms are stifling economic growth.

“The government must avoid placing further taxes on businesses and use the autumn budget to relieve these pressures in a meaningful way.”

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