With inflation reported as the second biggest worry of the region’s businesses in its latest Quarterly Economic Survey, East Midlands Chamber has commented as the figure rose to the highest level in eight months at 2.6%.
The latest estimated data published by the Office for National Statistics is the second consecutive month where inflation has been above the Bank of England’s target of 2%.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “Inflation is the second highest concern of businesses in the East Midlands right now, just under corporate taxation, according to our Quarterly Economic Survey published this week, so news of a further rise in the wrong direction – a second month going away from the 2% Bank of England target is not going to be welcome news for the business community.
“There’s immense pressure to increase prices already being experienced by businesses in the East Midlands. 6 out of 10 told us in the Quarterly Economic Survey that they intend to increase their prices so this couldn’t be a worse time – another economic blow, hot on the heels of the Autumn Budget which forced businesses to make tough decisions for next year, in addition to the ongoing high cost of doing business.
“With an interest rate announcement imminent and doubt on that being lowered thanks to rising inflation, this is a headache for businesses grappling with high borrowing costs on top of bracing for the impact of the Autumn Budget measures. Political leaders at regional and national level need to look at the full findings of our Quarterly Economic Survey and the stark picture it paints and put the East Midlands top of the list for support to enable the region’s full growth potential.”
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