Businesses still feeling the pinch as inflation persists, warns BCC
Businesses still feeling the pinch as inflation persists, warns BCC
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Welsh businesses remain under mounting pressure as inflation continues to hover above government targets, according to the latest data from the Office for National Statistics (ONS).
It comes as the ONS revealed the UK’s inflation rate has been held at 3.8% for the third month in a row, marking a full year of being above the Bank of England’s target of 2%.
The Consumer Prices Index (CPI) rate of 3.8% came in lower than expected, but business leaders say cost pressures are still squeezing firms across the UK, including in Wales, where energy, labour and tax burdens are weighing heavily on companies.
Reacting to the figures, David Bharier, Head of Research at the British Chambers of Commerce (BCC), warned that persistent inflation risks becoming “a uniquely British disease” as the UK continues to outpace other G7 nations.
He said: “Today’s CPI rate of 3.8%, coming in lower than expected, could provide some reassurance that we are at the peak, as expected by the BCC and Bank of England.
“However, the picture is mixed. Core inflation has slowed, but the reintroduced producer price data show factory gate prices rising at 3.4%, hinting that cost pressures remain in the pipeline, particularly for food and manufacturing.”
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