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Latest inflation data December 22

ended 17. January 2023

On Wednesday at 07:00, we're getting the latest inflation data, which will dominate the news. Inflation is currently at 10.7%, way above the 2% target. Selection of Qs for you.

  • How is your business or charity being affected by inflation, e.g. reduced customers/clients/sales, increased raw material costs, soaring energy bills, staff asking for pay rises, etc?
  • What are you doing to try and counteract inflation, e.g. upping prices for your products or services, or does that risk losing business?
  • What's been worse for your business or charity financially? The pandemic or the current economic crisis comprising rising interest rates, a contracting economy and soaring inflation?
  • How are inflation and the broader cost of living crisis impacting your mental health?
  • How confident are you feeling right now as a business or charity owner?

Any other thoughts, jot them down. If you're a Premium user, your response will be edited by a seasoned hack.

6 responses from the Newspage community

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Editor
Samuel Mather-Holgate
Independent Financial Adviser at Mather and Murray Financial
Inflation has peaked, but won’t fall off substantially until May when the majority of the energy price hikes fall out of the annual figures. This doesn’t mean that prices have dropped, just that they’ve stayed high and not risen higher still. This will kill off many businesses who just can’t pass on the mounting costs to consumers. Business energy bills is a big problem and we are yet to hear whether Hunt will help out or cut us loose.
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Scott Gallacher
Director at Rowley Turton
We've given our staff a double figure pay rise to help them cope with the cost of living crisis. However, it's not practical or feasible to pass that cost rise onto our consumers. Fortunately, we've invested in our systems and our staff, which has enabled us to take on new clients. And growing the business in that way has helped offset that additional cost. Sadly, it feels that we're having to work much harder just to stand still, which is less than ideal.
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Ian Hepworth
Director at Funding Solutions UK Limited
We are seeing businesses looking for cash flow solutions. Much of it is driven by soaring costs in energy, fuel bills and materials. However, this is further compounded by reducing supplier credit as rating agencies are dropping credit limits. Banks are reluctant to lend. Customers are paying slower in an attempt to conserve their own cash levels. Falling inflation is great. However, it is important to remember that does not mean prices will flow. It means that the acceleration at which they rise will reduce. Prices will still be going up. Even at 8% inflation you are losing one month's salary every 12 months.
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Racheal Straughan
Founder at Mayfli
The current economic crisis feels far more financially crippling than the pandemic, as there was help from the government and some online businesses thrived. Due to inflation, a lot of businesses that grew rapidly through the pandemic are now having to close. We hear every day from the businesses on Mayfli that their overall sales across all channels are suffering. With increasing overheads, this is a major crisis within the small business community. It's a fine line whether to raise prices and risk reducing sales further. The impact financial issues are having on business owners' mental health is devastating. Running a business can be a lonely and difficult journey even in the good times. As a community we are trying to support each other, in the hope things will pick up by Spring.
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Marie Johnstone
Managing Director at Wilson Property Group
At the moment in the property sector in central Scotland house sales are starting to slow and prices are showing signs of slight decrease. In difficult times it is natural for many organisations to increase prices and reduce services. In the property sector where your success is measured by successful marketing campaigns and sales of homes, a reduction in the marketing budget as an organisation is risky. The pandemic coupled with the impending economic climate is a recipe for disaster for many organisations and individuals alike. There are uncertain times ahead for sure. As a luxury property consultancy we will diversify and continue to invest into our people and marketing to which I am confident will see us through the difficult times ahead. We are all in this together, we must build strong, positive relationships.
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Robert Bolohan
Co-Founder at Lotuly
January has been very slow in terms of turnover, and this worries me a lot but we can't lose hope. Chances are in one year we might be doing something completely different, and are looking to pivot into building luxurious campervans and so far so good as the demand is higher than for our translation services. With inflation so high, and all the other headwinds facing the economy, we plan on creating another business just in case this one goes bust. Unless we get more clients our cash flow will be hit negatively at some point in the next two weeks. It has been the worst start to any year year. Even during the pandemic we had better months. I need to make drastic changes if this keeps going on like this. I need to take more breaks than normal as stress levels are much higher right now.