Inflation rate hold offers little reassurance, with impact of global tensions yet to be seen – Chamber

The UK inflation rate has remained unchanged at 3 per cent in February where data was collected before the conflict in the Middle East began.

Now Greater Birmingham business leaders are calling the government to keep all options on the table to tackle the rising energy bills and address cost pressures businesses face.

According to the Office for National Statistics, clothing made the largest upward contribution to the monthly change while motor fuels made the largest, offsetting, downward contribution.

Alcoholic drinks were also registered at a lower price than last year. 

Paige Bowyer (pictured), policy and research analyst of Greater Birmingham Chambers of Commerce, said: “Whilst its positive to see that inflation held at 3 per cent in February, this will provide firms with little reassurance, knowing that the full economic impact of the ongoing conflict in the Middle East has yet to feed through and a sustained rise in global energy prices could well place renewed upward pressure on inflation in the months ahead.

"With electricity prices closely tied to global gas markets, UK firms remain particularly exposed to external shocks, leaving many businesses vulnerable to rising costs at a time when margins are already under strain.

"As the crisis in the Middle East continues to play out, the government must keep all options on the table to help firms deal with rising energy bills.

“At the same time, other cost pressures, from business rates to national insurance, must be addressed as a key priority."