Businesses across the East Midlands are continuing to feel the squeeze as inflation holds steady at 3.8%, according to the latest figures from the Office for National Statistics for the 12 months to August 2025.
The persistence of inflation is influencing operational decisions for local companies, with many considering increases to prices in response to rising costs. Research from the East Midlands Chamber shows that around four in ten firms are already weighing price adjustments to maintain margins.
Companies in the region are navigating multiple financial pressures beyond inflation. Rising employment costs, including higher National Insurance contributions and a growing national living wage, are adding to operational challenges.
The combination of steady inflation and elevated costs underlines ongoing uncertainty for businesses, highlighting the importance of clear fiscal policy and predictable government support. Firms continue to seek assurance that further tax increases or policy changes will not add to financial pressures in the near term.
