Business growth under threat as inflation reaches fresh record high

Commenting on the Office for National Statistics inflation figures for June 2022, Managing Director of Business West, Phil Smith, said:    

“With inflation reaching a fresh record high of 9.4% and the ninth monthly increase in a row, businesses and households alike are facing unprecedented cost pressures.

These costs are set to increase even further in the autumn, with energy bills expected to skyrocket in October. 

“This squeeze on businesses’ operating costs is also reflected in the latest Producer Price Inflation figures which show a 24% rise in the year to June 2022, the highest level since records began in 1985. 

“In this challenging economic climate, it is no surprise that over half of firms are telling us they expect to raise their own prices over the next quarter. 

“It is crucial that Government, despite the current political uncertainty, takes action to support businesses by showing it has plans to aid economic recovery.

“The autumn budget will be an opportunity for the new Prime Minister and Chancellor to put in place a plan to help stabilise the economy so businesses can weather the storm.”