Feeling the pinch? Brexit and Easter holidays sees inflation hit three year high
Inflation hit a three-and-a-half-year high last month as the Brexit-hit pound and the timing of the Easter holidays pushed up the cost of living.
The Office for National Statistics (ONS) said the Consumer Price Index (CPI) measure of inflation reached 2.7% in April, the highest rate since September 2013.
The rise keeps the rate above the Bank of England’s 2% target and comes after CPI paused at 2.3% in February and March.
The Bank said in its inflation report on Thursday that CPI would peak at 3% later this year, as the pound’s slump since the Brexit vote causes price tags on everyday items to tick higher.
Inflation is now starting to impact on businesses.
Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), said: “The number of small firms reporting an increase in operating costs is at its highest since 2013.
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“That means it’s harder for them to invest, expand and create jobs. If costs continue to rise, it will undoubtedly have an impact on growth across the country.
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“We’ll be looking to the next Government to take action. Only last month small businesses had to absorb a hike in the National Living Wage and business rates.
“It’s high time for an increase in the Employment Allowance to £4,000 and a freeze on the Insurance Premium Tax. Small businesses need support in their battle against surging costs. As today’s CPI illustrates, that support is needed sooner rather than later.”
