Pressure on East Midlands firms to raise prices remains after high inflation holds

Unchanged inflation at 3.8% means businesses in the region continue to face price pressure, East Midlands Chamber has said. The latest figure from the Office for National Statistics covers the 12-month period until August 2025.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “East Midlands businesses reported inflation as one of their greatest concerns in detailed research we’ve carried out across the region so with no let up at 3.8% and the high cost of doing business, firms could look at price increases.  4 out of 10 businesses in our Quarterly Economic Survey for the region confirmed that was already a consideration for them.  

“3.8% inflation is a world away from – and almost double – the 2% target the government wish for and when you consider the mountain of other challenges firms have been facing, from higher National Insurance contributions on staff to a higher national living wage, conditions remain tough.

“What businesses need is support and assurance that they are not going to be hit with rumoured tax rises in the Autumn Budget.  Having undergone that from the last Budget, it’s an absolute must that the government protect firms and that means no hikes.”