Inflation jumped to 9.4% in June according to the latest data from the Office for National Statistics, with prices in the UK currently rising at their fastest level for more than 40 years.
Alex Veitch, Director of Policy and Public Affairs at the British Chambers of Commerce, said: “The rise in Consumer Prices Index inflation to 9.4% is the ninth monthly increase in a row and another record high.
“That represents a huge amount of cost pressure that businesses and households across the UK have had to absorb. These costs are set to rise further with surges in energy bills coming down the track.
“This squeeze on businesses’ operating costs is also reflected in the latest Producer Price Inflation figures which show a 24% rise in the year to June 2022, the highest level since records began in 1985.
“Against that background it is no wonder that two out of three firms are telling us they expect to raise their own prices, and three quarters are reluctant to invest.
“It is vital that Government sends business a clear signal that despite political upheaval it can still take action on the economy. Beginning a long-promised review of the Shortage Occupations List to ease the incredibly tight labour market would be a start.
“The autumn budget must then be the main priority of the new Prime Minister and Chancellor – a chance for them to reset, rethink and get their house in order.
“This inflationary surge sits alongside a poor economic outlook and unless the Government acts with urgency the chances of a recession will only increase.”