UK inflation held steady at 2.2 per cent in August, leaving the possibility for the Bank of England to cut interest rates again this year.
The annual increase in consumer prices, reported by the Office for National Statistics remained unchanged from July’s rate, and is significantly lower than at the peak of the cost of living crisis in 2022.
The figures come as the BoE’s Monetary Policy Committee prepares to announce its latest rate decision on Thursday after cutting the rate by a quarter point to 5 per cent last month.
However, a quadrupling of business rates bills in April could force venues to raise their prices, unless action isn’t taken in the Budget.
Kate Nicholls, Chief Executive of UKHospitality, said:
“While inflation has now stabilised, hospitality businesses continue to struggle as costs continue to rise, particularly across food, drink, energy and wages.
“The sector’s acute cost burden needs to urgently come down, if hospitality is to fulfil its ambition to deliver investment and growth into the economy.
“That can start at the Budget, if the Chancellor introduces a lower, permanent and universal business rates multiplier for hospitality.
“That would avoid the quadrupling of business rates bills when reliefs end in April, likely forcing businesses to raise prices to meet that rise, in turn threatening an inflationary spike.
“Hopefully, this stabilising of inflation will embolden the Bank of England to cut interest rates tomorrow, which is crucial in helping businesses still paying off Covid-related debt.”
