Inflation remains a threat to the UK economy, says the British Chambers of Commerce, predicting that the Bank of England is likely to remain hold the interest rate tomorrow lunchtime.
That’s the view of David Bharier, Head of Research at the BCC reacting to news of a rise in CPI to 2.6%.
He said: “Our research shows that taxation and inflation remain the top two concerns for businesses. Many businesses think the recent announcements such as the NICs increase, and Employment Rights Bill will lead them to increase their prices as they struggle to manage input costs.
“Our latest forecast expects CPI to remain above the Bank of England’s target until the end of 2026, mainly due to increased business costs and global trade uncertainty.
“Business investment will remain challenging unless firms are given extra help to deal with rising costs. Pushing forward with business rate reform would be one crucial step to take, coupled with a clear industrial strategy to unlock growth.”
