Latest inflation figures spell 'difficult times' for county businesses says Shropshire chamber chair
Shropshire Chamber of Commerce said a sharp rise in the rate of inflation has highlighted the "growing pressure" that businesses are now under to keep their running costs under control.
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The latest report from the Office For National Statistics showed inflation jumping from 2.5% to 3% in January, its highest figure in nearly a year.
The latest inflation rise was higher than the 2.8% predicted by economists and well above the Government's target rate of 2%, and was said to be driven by the rising cost of food and non-alcoholic drinks.
Ruth Ross, chief executive of Shropshire Chamber, said the figures would be a blow to county businesses hopes of investing and recruiting.
“Businesses across all sectors in the county are having to deal with significant cost burdens which threaten to fuel inflation further," she said.
“And with these figures coming just weeks before the introduction of higher employer National Insurance contributions and a rise in the minimum wage too, these are difficult times for many employers.
“Businesses are crying out for cost-pressures to be eased so that they can invest, recruit and trade – driving forward the economic growth we all want to see. Today’s figures suggest they are facing quite the opposite.”
The British Chambers of Commerce said it underlined the ‘real challenges’ businesses were currently facing from inflationary pressures in the economy.
Stuart Morrison, research manager at the British Chambers of Commerce, added: “Our latest research shows a spike in the proportion of firms expecting to raise prices following the Autumn Statement, while business confidence has dipped to 2022 levels.
“Overall, 75% of businesses cited labour costs as a main driver of price hikes and yesterday’s wage data is another reminder of that.
“The inflation landscape, coupled with ongoing global risks and the looming threat of US tariffs, is likely to give the Bank of England more food for thought, as it charts a cautionary path to further interest rate cuts.”
Shropshire Chamber of Commerce is currently collecting data for its latest quarterly economic survey, quizzing business owners on a topics including sales forecasts, international trade, recruitment, training, cashflow, and confidence levels.
