UK inflation fell to 3.8% in the latest figures from the Office for National Statistics, slightly below expectations. While the decline signals some progress, the West & North Yorkshire Chamber of Commerce has warned that businesses are still grappling with major cost pressures.
Inflation remains one of the top challenges for UK firms, second only to taxation. Despite the lower rate, Britain continues to outpace most G7 economies, highlighting persistent domestic pressures on prices and productivity.
Employers are contending with rising labour costs, higher National Insurance contributions, and sustained energy expenses, leaving limited room for recovery. The Chamber has cautioned that any further tax increases in the forthcoming budget could undermine investment and employment, adding strain to an already expensive operating environment.
