Despite a modest fall in UK inflation to 3.4% in May, businesses in the East Midlands are still under pressure to raise prices, according to regional insights from East Midlands Chamber.
The Office for National Statistics’ latest inflation estimate remains well above the Bank of England’s 2% target, adding further uncertainty for firms facing cost increases from higher employer National Insurance contributions and the recent rise in the National Living Wage.
Data from the Chamber’s Quarterly Economic Survey shows that half of local businesses expect to raise prices in the coming months, with inflation ranking as one of their top concerns. This pricing pressure is compounded by continued hesitancy around interest rate cuts, as the Bank of England weighs inflationary trends.
While recent government investment in areas like AI, skills development, and apprenticeships offers some longer-term optimism, the Chamber says any upcoming fiscal decisions must be carefully costed to avoid worsening already difficult trading conditions.
