The region’s firms continue facing price pressure although inflation has fallen slightly to 3.4%, East Midlands Chamber has warned.
The latest estimated figure from the Office for National Statistics covering the 12 months to May 2025 is above the government’s 2% target.
East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “We’ve seen inflation soar in recent months so while any easing might give a slight sigh of relief, let’s remember we’re still way above the government’s 2% target. We know from our Quarterly Economic Survey with businesses in the East Midlands in the first quarter of this year that half anticipate having to put their prices up.
“With the hiking of costs this year businesses have to foot like higher National Insurance contributions and a higher National Living Wage, inflation – the second biggest concern of businesses in the region in our research – was shown to be a key driver in any expectation to up prices. With the Bank of England having decided to keep the interest rate static at 4.25%, those looking to borrow will now be hoping for a drop later this year and the level of inflation could impact their next decision.
“Measures that were revealed in the recent comprehensive spending review from the government are a step forward for growth, such as investment into AI, apprenticeships and training but as we look ahead to the next Budget in Autumn, it’s essential there’s careful costing to prevent any spiralling that would add to the tough conditions already faced by firms.”
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