UK inflation falls slightly as petrol prices dip
Prices continue to rise at a 40-year high, but the UK’s inflation has eased slightly new figures this morning show.
Inflation fell slightly from 10.1% in July to 9.9% in August, the Office for National Statistics (ONS) announced this morning (September 14).
A fall in petrol prices was behind the drop in inflation, the ONS said, with wholesale costs falling after recesionary fears in the US impacted on the price of oil.
The Bank of England has said that inflation could rise to a peak of 13% this year.
Lesley So, founder of Derby-based eco-friendly drinks manufacturer, So Good Kombucha, said: “Our energy bills have more than doubled over the past three months and the price of raw materials like our glass bottles has increased by 50% over the past year.
“We can’t afford to raise our prices as we compete against mass-produced drinks that are a lot cheaper to make and so we have no choice but to continue to take massive hits on our margins. I’m afraid that this will get worse through the winter as demand for cold drinks drops and our bills continue to soar.
“This is going to significantly impact our ability to fulfil the whole point of the business, which was to create jobs for refugees and others who are marginalised in our communities. If this continues, many small businesses around the country like ours will really struggle to survive. To us, it doesn’t feel like the economy is growing.”
