Reacting to the latest ONS inflation figures, David Bharier, Head of Research at the BCC, said:  

“Today’s CPI rate of 8.7% indicates, that after several false starts, the peak in inflation looks to have passed. This is further evidenced by a significant slowdown in the producer price input rate to 3.9%. Falls in gas and electricity costs provided the largest downward contribution to CPI. 

“But this does not mean the problems caused by inflation will suddenly go away. Prices continue to rise from an already high base, after 18 months of price shocks.  

“The last year and a half has had a devastating impact on many small firms who were just starting to see activity bounce back following the removal of Covid restrictions. 

“With the interest rate currently at 4.5%, widespread skills shortages, and trade frictions on the rise, the cost of doing business is the highest in years.

“Action by the Government to help with the squeeze on the labour supply, reform of business rates and support on exports would go some way to helping them face the future with more confidence.”