Inflation remains top concern for business – Chamber

Inflation stayed flat at 4 per cent in January but remains a top concern for businesses, Greater Birmingham business leaders said today.

The consumer price index (CPI) measure of inflation stood at 4 per cent, according to the Office for National Statistics (ONS).

Economists had predicted a small increase to 4.2 per cent.

Keeping prices rising was the energy price cap, which rose in the month, bringing up the cost of gas and electricity and the cost of second hand cars, which the ONS said rose for the first time since May.

But inflation stayed at 4 per cent thanks to the first month-on-month fall in food prices in more than two years, the ONS added.

The cost of food dropped 0.4 per cent from December to January with the overall rate of food inflation at 8 per cent.

Less than a year ago, in March, food inflation was at a 45 year high of 19.2 per cent.

Emily Stubbs (pictured), policy and projects manager at Greater Birmingham Chambers of Commerce, said: “The news that inflation remained unchanged in January will be cautiously welcomed, however it remains a top concern for local businesses.

“In Q4 of last year, 30 per cent of greater Birmingham cited inflation as a primary concern - the highest of any external factor, although this has fallen in recent quarters from the highs we saw in 2022.

“The Bank of England has already warned that inflation is likely to remain volatile over the coming months because of global uncertainty.

“Next month’s budget is an opportunity for the Government to reassure and support businesses. Companies across the UK will be looking for a clear plan from the Chancellor that prioritises investment and skills.”

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