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The rate of inflation in the UK has slowed to 7.9% in the 12 months to June, but despite the positive step forward, more can be done for the night time sector according to the Night Time Industries Association (NTIA).
It was revealed by the Office of National Statistics (ONS) yesterday (Wednesday) that the annual inflation rate as measured by the consumer prices indexed has fallen after sticking at 8.7% in May.
“While we see a positive reflection in the inflation figures released today, dropping sharply to 7.9% in line with Bank of England predictions for June against 8.7% in May, we are some way off suppressing the cost inflation crisis suffered across the night time economy and hospitality sectors,” said NTIA chief executive Michael Kill.
“While this news is a positive step in the right direction for businesses and particularly consumers, many within the sector are concerned that the increase of alcohol duty, energy and insurance costs which have yet to be tamed will eradicate any benefit to the sector in the short term.”
Despite dropping to the lowest rate since March 2022, UK inflation is still the highest among the G7 group of advanced economies – the UK, France, Germany, Italy, Japan, Canada and the US, as well as the EU.
Kill added: “It is important that the Government continues to engage with the sector over the coming months, and accept that there will need to be a fiscal intervention for businesses which are at the sharpest end of this crisis.”
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