Inflation holds at 3% but businesses need support as they brace for possible future rises

Richard Blackmore from The East Midlands Chamber

East Midlands Chamber is urging policymakers to give greater support to the region’s firms amid fears that inflation, unchanged at 3%, could rise later this year due to the conflict in the Middle East.

The latest estimated figure from the Office for National Statistics covers the 12 months to February and remains above the Bank of England’s 2% target.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “A rise in inflation later in 2026 is not something we can rule out; it’s been widely forecast as a possibility, while reaching the Bank of England’s 2% target this year seems unlikely. The current level holding at 3% will give little comfort to firms in the East Midlands as it covers the period in time before the conflict in the Middle East began so its impact is not accounted for.

“Uncertainty is no good for business and amid the colossal weight of pressure from business rates, corporate taxation, high unemployment in the East Midlands at 5.6% and new regulation like the Employment Rights Bill – the first stages of which kick in within weeks – firms will be heading into the new financial year with a degree of worry.

“The Chamber’s Framework for Growth calls for the support businesses need and outlines the specific areas for policymakers to prioritise like taxation, planning, infrastructure, devolution and skills investment. It’s a working, evolving document and with inflation now looking less likely to reach the Bank of England’s 2% target this year, the need for support remains very high.”