Chamber Network reacts to the latest ONS Inflation Data

“Inflationary pressures are expected to intensify in the near term as the rising cost of imported raw materials, higher energy prices and the reversal of the VAT reduction for hospitality and tourism drives inflation materially higher by the middle of 2022. 

“Omicron could accelerate the current surge in inflation if restrictions in the UK and overseas to combat the new variant triggers more supply chain disruption.  

“Despite surging inflation, a December interest rate rise remains improbable given concerns over Omicron. While rates will rise sooner rather than later, with the current inflationary spike mostly driven by global supply constraints and price pressures, higher rates will do little to curb further price rises. 

“Greater support is immediately needed for those businesses impacted by Plan B, including making additional grant funding available and reverting the VAT for hospitality and tourism back to its emergency rate of 5%.” 

“Greater support is immediately needed for those businesses impacted by Plan B, including additional grant funding and reverting VAT for hospitality and tourism back to 5%."