Inflation Jumps as Businesses Face Mounting Costs

18th December 2024

David Bharier, Head of Research at the British Chambers of Commerce, reacts to the latest inflation data released this morning

Reacting to the latest inflation data released this morning, David Bharier, Head of Research at the British Chambers of Commerce, said: 

“A slight ticking-up of the CPI to 2.6% shows that inflation remains a threat to the UK economy. The Bank of England is likely to remain cautious and hold the interest rate tomorrow lunchtime. 

 

“Our research shows that taxation and inflation remain the top two concerns for businesses. Many businesses think the recent announcements such as the NICs increase, and Employment Rights Bill will lead them to increase their prices as they struggle to manage input costs. 

 

“Our latest forecast expects CPI to remain above the Bank of England’s target until the end of 2026, mainly due to increased business costs and global trade uncertainty. 

 

“Business investment will remain challenging unless firms are given extra help to deal with rising costs. Pushing forward with business rate reform would be one crucial step to take, coupled with a clear industrial strategy to unlock growth.”