Chief Executive of Liverpool Chamber reflects on the latest inflation announcements

“Inflation remains stubbornly higher than the Bank of England’s 2% target and this has been the case for almost a year. Viewed alongside a cooling labour market, this latest news will be a concern for businesses hoping to see a cut in interest rates.

“It seems clear that the government’s decision to increase employers’ NI contributions and the National Minimum Wage, as well as additional sector-based levies such as the packaging tax for food manufacturers, are driving up the costs of production and this is being passed into the market, keeping inflation high.

“If, as expected, the OBR issues a significant downward revision of productivity forecasts in the near future, there will be even greater pressure on the Chancellor to boost confidence at the Budget, while businesses in the Liverpool City Region will be waiting nervously in the hope that inflation recedes and we see a further interest rate cut before Christmas.”