Hospitality associations ‘concerned’ over inflation increase

Hospitality associations have raised concerns over the latest inflation rise reported by the Office of National Statistics (ONS).

 

The Consumer Prices Index (CPI) rose by 2.6% in the 12 months to November 2024, up from 2.3% in October. However, this was well below its recent peak of 11.1% in October 2022.

 

On a monthly basis, CPI rose by 0.1% in November 2024, compared with a fall of 0.2% a year earlier. This represented a second consecutive monthly increase, following an 0.6% uptick in October.

 

UKHospitality chief executive Kate Nicholls said: “The continued increase in inflation is concerning, and inevitably makes day-to-day life harder for businesses and consumers. Combined with lacklustre growth figures, it makes for a troubling economic picture.

 

“Despite these inflation figures, incentivising growth should remain the central goal for the government, and the Bank of England can play an important role by lowering interest rates.”

 

She called for governmental action on other costs hospitality operators are currently facing, adding: “Changes to employer national insurance contributions (NICs), particularly lowering the threshold, remains the biggest barrier for hospitality businesses and we urgently need the chancellor to rethink these changes to protect businesses and team members.”

 

A spokesperson for the British Beer and Pub Association (BBPA) said: “Publicans will be disappointed that inflation has risen for the second month in a row, especially after the budget, which has dramatically increased the cost of doing business.

 

“If pubs are to keep their doors open it is imperative that the government delivers permanent and meaningful reductions to business rates, as our sector is hugely burdened with punishing costs and taxes.

 

“We look forward to working with the government to bring forward these urgent changes in the New Year.”

 

Earlier this month, Nicholls warned that hospitality would be in for “18 months of pain” amid the rise in National Minimum Wage and NIC adjustments.

 

The BBPA described the increasing tax burden as damaging job prospects for young people.

 

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