Hopes for interest rate cut after inflation ease
Inflation is now at a low that hasn’t been seen since 2021 according to Office of National Statistics (ONS) and was a sharp drop from last month where in the year to March, the figure was 3.2%.
The level is now closer to the Bank of England’s 2% target, which trade bodies have shows it is time for interest rates to be cut.
UKH chief executive Kate Nicholls said: “Hospitality has weather unprecedented costs, including from Government policy.
“Today’s inflation data continues 18 months of improvement and we are now at a normal level of inflation."
Clear trend
She added: “The trend is clear and the Bank of England can now act with confidence. It’s time for interest rates to come down to support businesses investing in their growth.
“We should be ahead of the curve, not behind it.”
British Beer & Pub Association chief executive Emma McClarkin said the sector will welcome inflation falling back to 2.3%.
She added: “The sector has been hard hit by the cost-of-living crisis, with margins squeezed beyond what many have been able to bear.
“While April’s inflation figure is just above the Bank of England target, it will be hoped there will now be a cut to interest rates.
“These two factors combined should help generate some much-needed growth across the beer and pub sector ahead of what we hope will be a bumper summer of sport combined with more people enjoying a beer in the warmer weather.”
Food inflation
This comes as the latest data from CGA and Prestige Purchasing’s Foodservice Price Index revealed a 2.5 percentage point year-on-year decline in inflation levels for April, continuing a “steady trend towards stability” in pricing.
Prestige Purchasing CEO Shaun Allen said the report painted a picture of “cautious optimism” for the sector.
He added: “While some categories are still experiencing price fluctuations, the general trend towards lower inflation rates is a positive sign for the sector’s recovery.
“However, it is important to remain vigilant about the potential impact of external factors, such as weather patterns and global events, which could continue to influence prices in the coming months.”
