Stagnant inflation shows need for 'vital' changes
This comes as figures released by the Office for National Statistics (ONS) today (Wednesday 14 February) revealed the headline rate of inflation rose to 4% in the 12-months to January 2024, the same as December 2023.
The largest upward contributions came from gas and electricity charges, attributed to the OFGEM price cap increase last month.
Significant pressure
While the price of electricity, gas, and other fuels in January 2024 was estimated to be 18% lower than at its peak in January 2023, it was 89% higher than in January 2021.
However, the figures showed the annual rate of food prices fell between December 2023 and January 2024, down from 8% to 7%, the lowest annual rate since April 2022.
In addition, the largest downward contribution to inflation came from the decline in food and non-alcoholic beverages costs during this period.
BBPA chief executive Emma McClarkin said: “The continuation of inflation at 4% will do nothing to alleviate the significant pressure on the beer and pub sector that long ago ran out of room to absorb cost increases while also staying in business.
Prosperity and social value
“Despite this, brewers and pubs have done everything in their power in the last 18 months to keep their prices down and keep a pint at your local affordable.
“The Government must take the opportunity of next month’s Budget to make the vital cuts to beer duty, long term reforms to business rates, and reduction in hospitality VAT to alleviate this pressure.
“This will allow pubs and breweries to start to recover from this period of cost rises and return to bringing prosperity and social value to their local communities.”
