The UK’s rate of inflation hit a fresh 41-year high in October, accelerating to 11.1 per cent on the back of rising energy and food prices. This is the highest rate of inflation since October 1981.
The Office for National Statistics said the rate rose from 10.1 per cent in September, putting inflation at its highest level since October 1981. Economists had expected a rate of 10.7 per cent.
The high rise in prices in October presents a difficult backdrop for chancellor Jeremy Hunt’s Autumn Statement and suggests the Bank of England will have to raise interest rates further to bring inflation down to its 2 per cent target. The BoE is expected to raise rates in December, from the current rate of 3 per cent.
Sam Merrett, Policy Executive at the Herefordshire & Worcestershire Chamber of Commerce, said “This morning’s figures from the ONS are higher than predicted which has led to further concern for businesses this winter. Businesses are having to cope with rising energy prices, supply chain disruption and significant labour shortages. Businesses are telling us Brexit is causing labour issues and profound difficulties in importing and exporting goods. This only adds to the numerous problems firms have been facing and it is vital that the Chancellor sets a clear plan of support that will address the core issues for businesses, rising energy costs and inflation. Without this support, the UK faces a crippling recession at the end of the year.”
The Chamber’s Quarterly Economic Survey is a direct route for businesses to voice their concerns to local and national bodies. Have your say in influencing policy by reporting your business concerns over the last three months. We are currently seeing a similar trends of issues businesses are facing and as a Chamber we will look to represent you to national government to support firms.
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