Inflation eased slightly in August, falling to an annual rate of 9.9% from 10.1% in July, but it remained close to the highest rate in 40 years.
Although another small rise in the headline rate had been expected, a monthly fall in petrol and diesel prices contributed to the slight easing of inflation. Prices rose by 0.5% in August from July, according to the Office for National Statistics.
The British Chambers of Commerce Director of Policy and Public Affairs, Alex Veitch, said: “This rise in Consumer Prices Index inflation by 9.9% confirms the sustained pressure businesses and consumers have been facing over the past year.
“This is also reflected in the squeeze on businesses’ operating costs as Producer Price Inflation figures remain at record highs of 20.5% in the year to August 2022.
"While the rate of growth has eased slightly, this has been driven by a fall in motor fuel costs and other goods continue to rise. There is a limit to how long any firm can sustain these rising costs before something has to give. We know from our research that two thirds of businesses plan to increase their own prices.
"The size of last week’s Government intervention on energy prices should have a dampening effect on inflation when it is enacted.
“But the lack of detail on exactly how much help any individual business will get, and for how long, means very few will be planning to invest any time soon.
“There are also a whole host of other issues ranging from transport and shipping costs, raw material prices, energy sector regulation and the tight labour market that must be addressed.
“It is imperative the Government’s forthcoming ‘fiscal intervention’ provides business with confidence that there is a cohesive plan to take the economy forward.”
