Surprise rise in inflation as uncertainty remains

January 18, 2024

Responding to the latest inflation figures from the ONS, David Bharier, Head of Research at the British Chambers of Commerce said:

“Consumer price inflation remains stubborn with a slightly higher than expected growth rate of 4% in December 2023, and no change in core inflation at 5.1%. However, producer prices continued to fall by 2.8%.

“For consumers, prices continue to rise from a very high base. The current global picture means the path ahead is now more uncertain. One of the core reasons for the last two years of inflation was supply chain collapse due to Covid-19 lockdowns.

“We are already seeing current disruption in the Red Sea leading to a spike in indicators such as shipping container and insurance costs.

“Our surveys show while inflation has been diminishing as a concern for businesses, it remains top of the list, particularly for sectors more exposed to economic shocks like hospitality and retail. Coupled with trade barriers with the EU and ongoing worker shortages, trading conditions remain tough.

“Businesses are increasingly desperate for a clear, long-term strategy which delivers on infrastructure, trade, skills, and green innovation to grow the economy.”

More information on the ONS data can be found here.