GDP grows 0.5% but sector remains behind
According to the data, accommodation and food service activities saw a decline of 0.2 percentage points (pp) while the services industry increased by 0.4pp.
Furthermore, inflation rose by 9.1% in the 12 months to May 2022, up from 9.0% in April, with rising prices for food and non-alcoholic beverages, compared with falls a year ago, resulting in the largest upward contribution to the change in rates during this period, according to ONS.
Chancellor of the Exchequer Nadim Zahawi said: "We're working alongside the Bank of England to bear down on inflation and I am confident we can create a stronger economy for everyone across the UK."
Difficult balance
According to Brendan Padfield, owner of the Unruly Pig in Bromeswell, Suffolk, inflation has proved a “plague on everyone’s house”.
He said: “Inevitably, some accommodations need to be made as we try and balance this very difficult, inflationary equation with what the customer is willing to pay.”
The operator added there was a disconnect between what customers saw in the supermarket and what they saw in the restaurant; he believed there was still the perception pubs should be able to absorb the inflationary costs.
Padfield said: “I still get customers commenting that we've put our prices up.
Future growth
“I'm hoping the realisation this is hitting everyone across the board will mean we'll get less comments like that going forwards.”
This comes as yesterday (Wednesday 13 July) saw pub chain JD Wetherspoons (JDW) repeat calls for tax equality between the on and off trade after reporting like-for-like sales had dropped by 0.4% in the first four weeks of quarter four of the current financial year.
JDW chairman Tim Martin said: “Inflation, mainly a result of the ‘money printing’, which was activated by Governments and central banks to finance lockdowns, has proved to be far higher and more intractable than anyone anticipated.
“[The company] has tried to take a long-term approach to these issues, investing heavily in the workforce, in buildings, in marketing and in contracts with landlords and suppliers, which will hopefully create a solid base for future growth.”
