The latest figures from the Office for National Statistics (ONS), released today (Wednesday 18 December), revealed the headline rate of inflation jumped 0.3 percentage points last month, marking the second consecutive month of year-on-year increases.
According to the data, the Consumer Prices Index (CPI) rose by 2.6% in the 12 months to November 2024, up from 2.3% in the 12 months to October, driven in part by rising fuel prices.
Following the release, trade body UKHospitality (UKH) warned rising inflation combined with “lacklustre growth figures” had made for a “troubling economic picture”.
Important role
UKH chief executive Kate Nicholls said: “The continued increase in inflation is concerning, and inevitably makes day-to-day life harder for businesses and consumers.
“Despite these inflation figures, incentivising growth should remain the central goal for the Government, and the Bank of England [had the chance] to play an important role by lowering interest rates on Thursday 19 December.
“Changes to employer NICs, particularly lowering the threshold, remains the biggest barrier for hospitality businesses and we urgently need the Chancellor to rethink these changes to protect businesses and team members.”
Urgent changes
Food inflation was also estimated to have stood at a similar rate (2.2%) in the latest Foodservice Price Index Report from Prestige Purchasing and CGA by NIQ.
A spokesperson for the British Beer & Pub Association (BBPA) implored the Government to deliver on its promise to reform business rates to unburden the sector.
The spokesperson said: “Publicans will be disappointed that inflation has risen for the second month in a row, especially after the Budget which has dramatically increased the cost of doing business.
“If pubs are to keep their doors open it is imperative the Government delivers permanent and meaningful reductions to business rates, as our sector is hugely burdened with punishing costs and taxes.
“We look forward to working with the Government to bring forward these urgent changes in the New Year.”
