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Rising inflation and your business

ended 18. December 2024

Inflation rose by 2.6% in the 12 months to November 2024, up from 2.3% in the 12 months to October. Meanwhile, the economy is contracting, as official data showed last week. How is your business faring in this climate? And could things get worse in 2025 as the impact of the Budget feeds through? How confident are you feeling about 2025? Any thoughts, send them across ASAP as this story is BREAKING.

3 responses from the Newspage community

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Tony Redondo
Founder at Cosmos Currency Exchange
The rise in inflation to 2.6%, its highest level since March and the ongoing contraction of the UK economy, simply add to the significant challenges for businesses. Many are grappling with increased costs and reduced consumer spending, which has led to, at best, a cautious outlook for 2025. The impact of the Autumn Budget, particularly the increases in National Insurance and the minimum wage is already having a profound negative effect as can be seen from last week’s data showing job vacancies fell at their fastest pace in over four years in November as firms held off hiring due to the government’s Budget tax hikes. As firms brace for the effects of these measures, confidence is waning. More than half of businesses anticipate raising prices, further straining consumer budgets. The outlook for 2025 appears grim, with predictions of slower growth and heightened inflationary pressures. Businesses are urged to prepare for a challenging year ahead as they navigate these economic headwinds.
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Rakesh Dua
CEO at DUA Accountancy & Business Consultancy
Businesses will have to increase prices and many have already factored those in from January 2025. The question remains, will prices have to be increased again in mid 2025. The economy looks very weak and the mood is not good. In fact, it's looking like a spiral of doom for certain sectors of the economy.
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Richard O'Connor
Director at First Mats
Ultimately, all tax rises are paid by consumers, and the current rise in inflation demonstrates this in action. The tax changes announced in the autumn Budget have significantly increased costs for businesses. As costs go up, the prices of goods and services must also rise, which is bad news for consumers, who are already dealing with high costs in their daily lives, and bad news for businesses striving to stay competitive and profitable. In our case, we've used AI and automation to drive growth and create new jobs on the back of it. However, many businesses facing higher costs may turn to AI as a way to reduce expenses, which could lead to workforce reductions instead of growth.