This comes as figures released today (Wednesday 14 September) from the Office for National Statistics (ONS) revealed the Consumer Price Index (CPI) fell from 10.1% in July to 9.9% last month.
However, the data showed the price of food and non-alcoholic beverages soared to 13.1% in the 12 months to August 2022, up from 12.7% the previous month.
Positive news
The annual rate for the food and drink category saw a decline of 0.6% in July 2021, but it has since risen for 13 consecutive months, with the current rate being the highest since August 2008.
In a Twitter post this morning, Nicholls said: “Positive news on inflation - after months of ever-increasing figures, the rate of inflation came down slightly in August.
“But food price inflation continuing to rise - vital to tackle cost of doing business across food supply chain and hospitality.”
According to ONS, a decrease in the cost fuel made the largest downward contribution to inflation rates between July and August 2022, with petrol prices having fallen by 14.3p per litre between these months, compared with a 2p per litre increase between July and August 2021.
Diesel prices also contributed to the change in the rate, falling by 11.3p per litre this year compared with a 1.5p per litre rise last year.
Furthermore, the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 8.6% in the 12 months to August 2022, down from 8.8% in July, with household energy costs being one of the main contributors to the increase.
Despite energy costs forcing some businesses to consider closing, the Government recently stated businesses could have to wait until November to receive support in tackling rocketing energy costs as leaders across the sector call for “urgent clarity”.
Urgent clarity
This comes as predictions from real estate adviser, Altus Group, showed if inflation were to continue like this, businesses rates could exceed £2bn by next year without Government intervention.
British Beer & Pub Association chief executive Emma McClarkin said: “Pubs and brewers will not be able to wait days, let alone months to get clarity on their energy bills.
“Many are making decisions now as to whether they will have to close this winter.
“We need urgent clarity on whether this cap will deliver for businesses and help them out of a crisis that has been building for months and urge the Chancellor to seriously consider what immediate reassurance he can give for the thousands of business owners currently in despair.”
