Prices surge pushes inflation to over 10 per cent

Prices rose at the fastest rate for 40 years pushing inflation to 10.1 per cent in the 12 months to September, new figures show today. The figure for August was 9.9 per cent.

The rise was driven mostly by rising food prices and food and non-alcoholic drink prices rose by 14.6 per cent in the 12 months to September, 2022, up from 13 per cent in August.

Business leaders in Greater Birmingham immediately demanded that the Government continues to stabilise markets and deliver a clear and credible plan for tackling the rising cost of doing business.

September's inflation reading will be used to help calculate April's rise in the state pension as well as the increase in benefits. How reports this morning suggested that the triple lock on State pensions was in danger.

It comes as Prime Minister Liz Truss comes under mounting pressure from MPs for a series of economic U-turns.

Erin Henwood, policy advisor at Greater Birmingham Chambers of Commerce said: “Inflation continues to be a major source of concern for businesses. Given the recent turbulence, particularly in the value of the pound, it is hard to see this diminishing in the coming weeks.

"The Bank of England has spent the past few weeks taking substantial steps to calm the financial markets and walk the economy back from a cliff edge. Now, the Government must continue to stabilise markets and deliver a clear and credible plan for tackling the rising cost of doing business.

“However, we must be mindful that any rowing back of support for households in paying their energy bills will likely lead to an inflationary spike in the spring, which will have a subsequent impact on levels of consumer spending.

“In addition, businesses that are already suffering from huge overheads will now face massive tax increases in April, particularly with business rates bills rising in line with September 's inflation figure.

“With this in mind, the Government must set out short-term measures that enable the hardest hit businesses to manage their overheads in the coming months and minimise the pain many firms are feeling, including temporary VAT for hospitality and non-essential retailers and reform to the business rates system. ”