According to the latest figures from the Office for National Statistics (ONS), released today (Wednesday 17 July), the Consumer Prices Index (CPI) rose by 2% in the year to June 2024, the same rate as the 12 months to May 2024.
Upwards contributions
The services sector, including hospitality outlets, were cited as having made the largest upwards contribution to the rate, in particular restaurants and hotels, as prices continue to rise across the board for the sector.
Prices of food and non-alcoholic beverages increased by 1.5% during this time, down from 1.7% in the year to May.
It marked the lowest annual rate for the segment since October 2021, when it was 1.3%, and compared with 17.4% a year ago.
Figures from the ONS released last week also revealed the economy grew by 0.4% in May, rebounding from zero growth in April.
Action on costs
Last month, trade body UKHospitality (UKH) called for the Bank of England to reduce interest rates, which have been held at 5.25% for some time, after its 2% inflation target was achieved.
However, the bank said monetary policy would need to remain “restrictive” for long enough to “sustainably” return inflation to 2% in the “medium term”.
Ahead of the King’s speech later today, where the Monarch will outline the Labour Government’s plans for the country, UKH chief executive Kate Nicholls called for “action” to be taken to address cost pressures.
In a post to X Nicholls said: “Inflation staying at 2% this month, but services prices remaining stubbornly higher at more than double, largely due to higher costs and particularly business rates and wages - we need Government action on costs in today’s King’s Speech.”
