Rising food prices and employment costs keep inflation ‘stubbornly high’ – Chamber

Steeply rising food prices - driven by poor harvests and increased employment costs – along with an uptick in fuel prices have contributed to inflation remaining stubbornly high at 3.8 per cent.

According to the Office for National Statistics, food prices have gone up by 5.1 per cent in the year to August for the fifth month in a row.

Rising prices for restaurants and hotels also continued to push inflation upwards.

Reacting to these rates, the Greater Birmingham Chambers of Commerce (GBCC) is calling Chancellor Rachel Reeves to not increase taxes on businesses in the upcoming Autumn Budget.

GBCC head of policy Emily Stubbs (pictured) said: “Many firms will be deeply disappointed that, together with recent labour market statistics, these figures are unlikely to convince the Bank of England to cut interest rates tomorrow.

“However, a rate cut may be on the cards later in the year, depending on how the winter months play out.

“What is clear, is that the Chancellor must not further increase taxes on businesses in the upcoming Autumn Budget.

“Firms cannot provide the economic growth we all need if they continue to be hampered by rising costs.”

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