The UK’s inflation rate rose to 2.9% in the year to July, up from 2.6% the month before due to higher energy, according to the latest figures from the Office for National Statistics.
It is highest rate of inflation since March, but some price rises have slowed, including food inflation which is at 1.3%, is at its lowest rate for almost five years. 
Caterina Batog, Research and Economics Analyst at the British Chambers of Commerce, said: “Firms continued to feel the heat from inflation last month, with CPI rising to 2.9%, further fuelling the cost of doing business crisis.
“Higher household energy bills fuelled by the Middle East crisis played a significant part in July’s CPI rise, and as the Bank of England has warned, energy is likely to push up inflation further in the coming months. Energy remains a major issue for businesses, who aren’t subject to a price cap.
“For the firms we represent inflation is the number one concern. Our latest survey shows 66% of firms cited it as a worry in Q2.
“The cost pressures facing businesses are made abundantly clear in our cost-stack model launched earlier this month. Margins are being squeezed hitting investment and recruitment.
“The Government must use the Budget as an opportunity to back business, cut costs and deliver growth. The Chancellor needs to give firms the breathing space they desperately need by outlining ambitious measures to drive forward trade, investment and productivity.”
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