The U.K. rate of inflation has hit a 30 year high of seven per cent with fuel and transport costs driving the increase
The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation rose to seven percent in the year to March, up from 6.2 percent in February.
The Bank of England has predicted that inflation could peak at around eight percent in April.
Helen Dickinson, Chief Executive of the British Retail Consortium, said:
“Households around the UK will be feeling the pinch as the cost of living continues to rise. Retailers are trying to help consumers by expanding their value ranges and doing all they can to keep the price of essentials down. This can be seen in the BRC’s Shop Price Index, which tracks the price of basic goods, which showed a slower rise in the price of essential foods and other products than the inflation levels report by the ONS.
“Consumer confidence has fallen significantly in recent months, as worries around personal finances rise. Households face a plethora of rising costs, with higher inflation to come as the increase in the energy price cap pushes up April’s figures. Retailers are not exempt from these pressures, as the costs of transport, energy, raw materials and staff wages all continue to rise.”
Alpesh Paleja, CBI Lead Economist, said:
“The latest rise in inflation will not be the last. We’ll see another jump over April, as the rise in Ofgem’s energy price cap comes into effect. Beyond this, volatility in global commodity prices and ongoing supply chain disruption will continue to stoke price pressures. The result will be even higher costs for businesses, and a deep squeeze in the cost-of-living for households.
“The energy-centric nature of inflationary pressures highlights the need to double-down on investment in green energy. Making homes and commercial buildings more energy efficient would help reduce demand and consumer bills. In the near-term, reducing policy costs for energy intensive industries and continuing support for low-income households will be essential in helping those worst hit.”
Natalie Lobel, founder at Manchester-based Grounded MCR, a small businesses selling coffee, tea and iced drinks from a trike:
“In our adult lives, my wife and I have never really been out of debt, and when we set up our social enterprise coffee trike, we were still in debt. Inflation hitting 7% is catastrophic but we are determined to stay positive. We aren’t in this business to make money so as long as we can get by, then that’s enough. Personally, we will cut back on everything to ensure a simple life and professionally we hope our regulars will still find money for an affordable luxury, namely a good brew. We will do everything we can not to put our prices up, however if we do, we will lower them again as soon as humanly possible.”
