News / Press release / Economy

Inflation falls, but rates hike fear remains

Sam Ette

Communications Manager

Inflation figures from the Office for National Statistics shows that inflation fell to 6.8% in July, a drop of 1.1%.

Core inflation, however, remained flat at 6.8% and food inflation remains historically high at over 15%.

Our response

Our Chief Executive Kate Nicholls said: “Another fall in the overall rate of inflation is encouraging and indicates a positive trend.

“However, core inflation remaining flat at 7% does raise serious concerns that hospitality businesses will be hit hard by an inflation-linked hike in business rates next year.

With rate increases following the September inflation rate, we need to see a dramatic fall in inflation by then or hospitality will face a business rates bill running into the hundreds of millions.

“It’s clear the fall in the overall rate has been driven by decreasing energy costs, which suggests further action on energy could result in inflation coming down far more rapidly.

“Ofgem has set out a number of recommendations to clean up the energy market and these should be implemented as soon as possible.”