Inflation heaping pressure on firms, warns BCC

17 Sep 2025

UK firms are still under pressure after the annual rate of inflation remained at 3.8% in August, the British Chambers of Commerce (BCC) has warned.

The Office for National Statistics (ONS) showed that overall inflation rate remained unchanged from July, while food price inflation continued to rise.

The ONS says food inflation hit 5.1% in the 12 months up to August, the fifth month in a row the rate has climbed.

Stuart Morrison, Research Manager at the BCC, said: 'Businesses will be worried by inflation holding at 3.8% at a time when cost pressures continue to bite, especially on wages. The BCC's latest economic forecast expects inflation to remain at around this level until the end of the year. 

'Firms are clear that April's rise in National Insurance, continued strong wage growth and higher tariffs are all eroding their operating margins. There is also growing concern that sticky inflation will limit the scope for further interest rate cuts. 

'Ahead of the Autumn Budget, our message to the Chancellor is clear – there must be no new tax rises on business. Firms cannot provide the economic growth we all need if they continue to be hampered by rising costs.'