Chamber Comments on Inflation Rise

17 Aug 2022

Published in: Black Country Chamber of Commerce News

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Chamber continues to call for financial support

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The cost of living has soared again, putting further strain on under-pressure households and businesses as inflation today surged into double digits, hitting a fresh 40-year high of 10.1pc.

The consumer price index rose by more than expected last month, according to figures from the Office for National Statistics.

That is up from 9.4pc in June and marks the highest level of inflation for more than four decades.

The figures suggest there will be no let-up for Britons' finances, ahead of another jump in energy bills and the Bank of England warning that inflation will peak above 13pc later this year.

It means inflation in Britain remains at the highest level since February 1982.

The latest rise heaps further strain on cash-strapped households and businesses facing soaring energy bills, and squeezes workers' spending power as wages fail to keep up with inflation.

The massive jump in inflation comes after ONS figures released on Tuesday (August 17) revealed workers had been hit by the pay slump since records began, as they saw a 3% drop in regular pay terms. Energy, food, and fuel prices have all also rocketed - in part due to Russia’s invasion of Ukraine.

Commenting on the figures, Neil Anderson Director of External Affairs for the Black Country Chamber of Commerce said, "Businesses continue to face many challenges and today's news compounds an already unsettled situation. With firms having already offered wage increases to counter inflation, combined with higher pay due to post-pandemic workforce shortages and recruitment challenges, this is creating a perfect storm for businesses.

“This is especially so when energy, raw materials, and logistics, already at an all-time high, are at risk of further price increases caused due to inflation. With inflation figures predicted to rise further before they fall, some predicting over 13% for next year, this will be a challenging time for business leaders and a workforce with wages rising, but unable to beat inflation.”

“The Chamber continues to call for financial support to energy intensive sectors, which make up a large proportion of employment in the Black Country’s economy and is asking for movement on the price cap along with other interventions which will ensure firms can continue to grow or in many cases survive."