UK inflation has eased in March, however rising food prices has meant inflation remains higher than expected above 10%, adding to the speculation that the Bank of England will raise interest rates again on Thursday.
According to data released from the Office for National Statistics (ONS), inflation fell to 10.1 per cent in the year to March from 10.4 per cent in February. It was widely expected to fall below 10 per cent, but food prices have risen their fastest rate in 45 years.
Sam Merrett, Policy Executive at HWCC, said: “This morning’s easing of inflation figures is welcome news to businesses that have been tackling the rise in prices in recent months. However, inflation remains high, and the rate of rising prices will have an impact on businesses through a lack of consumer spending. In the Spring Budget, Jeremy Hunt made it his priority to tackle inflation and it is now vital that further support is provided to businesses to help tackle the spiraling costs.”
“In our most recent Quarterly Economic Survey, 67% of businesses indicated inflation as a cause for concern to their business. This was by far the most significant concern to businesses in Herefordshire and Worcestershire that answered the survey and this morning’s figures will not offer much hope for improvement in the coming months.”