UK inflation figures released today highlight the growing impact of global instability on the cost of living, with rising fuel and supply chain costs continuing to put pressure on businesses and consumers alike. The latest data from the Office for National Statistics suggests that geopolitical tensions, particularly in the Middle East, are feeding through into higher prices across key sectors.
Responding to the figures, UKHospitality has warned that the sector is particularly vulnerable to these pressures, with businesses facing mounting costs that are increasingly difficult to absorb.
Kate Nicholls, Chair of UKHospitality, said: “The inflationary impact of the conflict in the Middle East is evident in today’s figures.
“Hospitality businesses are highly exposed to increased fuel prices, through the price of food, drink, transport and other key inputs. As one of the final links in the food supply chain, the sector cannot be expected to pick up the bill for increased costs down the chain.
“Hospitality is already one of the most heavily taxed sectors in the economy and there is no room to absorb further cost increases. Ultimately, it will result in price rises at the till, further driving inflation.
You Might Also Like:
UKHospitality calls for tax cuts to revive sector in upcoming budget
UKHospitality Scotland urges government to use Barnett funds to back struggling sector
Soaring business rates set to cost Scottish pubs and hotels tens of thousands more
Hospitality warns fresh cost hikes will force closures and job losses
“The impact on consumer demand should be closely monitored, as our pubs, restaurants, cafes and hotels will be the first to feel the combined hit of increased input costs and reduced spending.
“The Government should be looking closely at how it can reduce the cost of doing business for demand-sensitive sectors like hospitality, which are uniquely exposed to these kinds of economic shocks.”
