UK inflation hit 11.1% in October according to figures from the Office for National Statistics, up from 10.1% the previous month.
The figure is the highest for 41 years as soaring food prices, raw material costs and energy bills drive up the cost of living for both businesses and households.
Head of Research for the British Chambers of Commerce, David Bharier, said: “Today’s CPI index of 11.1% shows that far from peaking, inflation continues to rise. At 19.2%, Producer Price Inflation (PPI) remains way above historical levels.
“We speak to thousands of businesses who tell us this is unsustainable. Our research shows that confidence is falling fast as many SMEs find it almost impossible to absorb or pass on rising costs.
“While the Bank of England seeks to control inflation through further interest rate rises, this is a blunt instrument that fails to address the core drivers of inflation for most firms: soaring energy costs, global supply chain disruption and rising staff costs due to labour shortages.
“Ahead of tomorrow’s Autumn Statement, businesses will need to see a clear plan from the Chancellor to boost business investment and growth, as well as targeted measures that ease the specific causes of inflation. The UK economy otherwise faces a lethal combination of recession and runaway inflation.”
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