News / Press release / Economy

Inflation remains at 4% – our response

The Office for National Statistics has announced that the rate of inflation in January 2024 remained at 4%, the same as the previous month.

The rate of inflation, including housing costs, remained at 4.2% in January 2024, also the same as the previous month.

Our response

Kate Nicholls, Chief Executive of UKHospitality, said: “The rate of inflation not increasing, as widely expected, is positive but let’s not forget that this still means prices are continuing to rise.

“Hospitality businesses are continuing to feel the brunt of these costs, with food, drink and energy all continuing to rise at a rapid rate.

“With business rates set to increase by 6.7% and the National Living Wage rising in April, venues will be hit once again by a tsunami of additional costs.

“Unfortunately, the vast majority of businesses have absorbed all they can and are now forced to pass these onto consumers.

“If the Government wants to avoid the risk of an inflationary spike in April and the following months, it should take action at the Budget to cap business rates increases and reduce the rate of VAT for hospitality.”

Write to your MP backing our Budget asks

Ahead of the Budget on March 6, we’re asking the Government to support the sector by capping business rates increases, lowering the rate of VAT and addressing employer National Insurance Contributions.

Our three critical asks at the Budgetarrow icon