IoD: Rising inflation is now hardwired into routine business decisions

Commenting on the news that CPI inflation rose from 5.5% to 6.2% in February, Kitty Ussher, Chief Economist at the Institute of Directors, said:

“This higher-than-expected rise, even before the anticipated increase in energy bills in April, demonstrates that rising inflation is now hardwired into routine business decisions, with price increases spread widely across all sectors of the economy.

“Today’s data is consistent with our own membership surveys, which also showed a rapid increase in expectations of inflation from January to February.

“High inflation adds to the uncertainties and costs of doing business. For households reliant on benefit income there is an additional concern, namely that benefits are uprated in line with the rate of inflation as it stood in the previous September, which, at 3.1%, was only half the current rate.  All eyes will be on the Chancellor this afternoon to see if this is something he is prepared to take action on.”