Rise in inflation adds to pressure for businesses already dealing with tough conditions

With inflation having hit 3.8%, firms need more support as they face increased pressure to put up prices, East Midlands Chamber has said. The latest figure from the Office for National Statistics, taken from the Consumer Price Index, covers the 12 months to July and is the biggest increase since January 2024.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “Already well above the government’s 2% target, inflation continues rising in the wrong direction and that will not be of comfort to the 4 out of 10 East Midlands firms already considering putting up their prices, according to our Quarterly Economic Survey. The findings place inflation right at the top of the list of concerns businesses in the region have at the moment, alongside corporate taxation.

“In normal times, firms would be focused mostly on their competitors, not worrying about covering costs.  Higher employer National Insurance contributions, a higher national living wage and rising inflation have added to the mountain of challenges businesses have been forced to navigate. Our survey, of hundreds of businesses in the region, painted a picture of fragile confidence, where only 3 out of 10 respondents said they expected an increase in profitability over the next 12 months. 

“With the Autumn Budget drawing closer, now is the perfect opportunity for political leaders to protect business growth with supportive policies – that means ensuring firms are not hit with further tax hikes.”