The overall drivers of inflation have been energy, fuel and services. As a result, we expect to see increase pressure on Business owners too as these costs are direct costs to production i.e. fuel and energy are not a choice. They are critical to creating and delivering products and services. This will present challenges to UK business owners who are already appraising how to address the first few months of increased labour costs from changes to national insurance and minimum wage.
Experts at East Anglian accountancy firm Price Bailey are now expecting that young people entering the world of work will continue to find it challenging to find both entry level roles and see meaningful progression that helps them move up the property ladder. Some industries, such as accounting and law, will defy this but for many the pressures on upward mobility will continue.
Chand Chudasama, Partner at Price Bailey and Strategic Corporate Finance expert comments:
"April’s inflation data shows a concerning trend for both consumers and businesses. The sharp increases in energy, water, and essential services place direct pressure on household budgets, while simultaneously inflating the cost base for UK businesses. This dual squeeze restricts consumer spending and erodes business margins. As these input costs ripple through supply chains, the knock-on effect can stifle growth and innovation. Policymakers and businesses alike must act with foresight to absorb and adapt to these pressures to avoid a longer-term drag on economic momentum."
