Inflation reaches 9.4 per cent with continued rise predicted

UK inflation has hit 9.4 per cent in June, a 0.3 per cent jump since the previous month.

Figures released by the Office for National Statistics (ONS) show prices are continuing to rise at their fastest recorded rate in 40 years, driven by petrol, energy prices and food costs.

And this figure is expected to increase further to 11 per cent by the autumn, according to predictions from the Bank of England.

Employees' pay is also falling at its fastest rate in 21 years as a result of rising costs.

Erin Henwood (pictured), policy advisor at Greater Birmingham Chambers of Commerce said: “Figures released this week by the Office for National Statistics paint an uncertain picture of the UK 's economy, with workers suffering their biggest pay drop in two decades and inflation once again hitting its highest level in 40 years.

“Nearly half of businesses - the highest number on record - reported feeling concerned about inflation in our Q2 Quarterly Business Report. Even more reported that they expect the price of their goods or services to increase over the next few months, with many sharing concerns about how this might impact consumer behaviour.

“Businesses desperately need confidence that the Government is focused on tackling current economic challenges. Though we have heard plenty of talk from the new Chancellor and his predecessor, we are yet to see serious fiscal intervention to bring down inflation to stimulate the economy and help businesses concentrate on their growth and recovery. ”