The Consumer Prices Index (CPI) rose by 3% in the 12 months to January 2025, up from 2.5% in the 12 months to December 2024, according to the latest figures from the Office for National Statistics (ONS).
In addition, the Consumer Prices Index including owner occupiers' housing costs (CPIH) jumped from 3.5% to 3.9% during this period, marking the highest figure for 10 months.
On top of rising inflation, operators are continuing to battle economic headwinds across the board, including high interest rates, with many firms facing a potential cliff edge in April when increases to Employer National Insurance contributions come into force.
Added pressure
A spokesperson for the British Beer & Pub Association (BBPA) said: “Brewers and pubs create jobs, put money in people’s pockets, and are at the heart of communities.
“However, with the industry facing an April cliff edge where they’ll have to shoulder a further £650m in costs, so this steep increase in inflation only adds to the impossible cost of doing business.
“Our sector, which pours billions into the economy, can boost growth but only if we can keep the doors open, which is why Government must reform business rates and phase in new employment costs.”
In addition, food and beverage costs have also continued to put pressure on the sector.
Food and non-alcoholic beverage prices saw a 3.3% uptick during the 12-month period, up from 2% at the end of last year. However, this figure was below the 7% rate in January 2024, the ONS data revealed.
Empty carbs
Upward contributions to the change in the annual rate of food inflation between December 2024 and January 2025 were largely attributed to the cost of meat, bread and cereals, fish, milk, cheese and eggs, sugar, jam, honey, syrups, chocolate and confectionery, hot drinks and soft drinks.
Speaking with LBC news earlier today, UKHospitality (UKH) deputy chief executive Allen Simpson explained “times are tough” for hospitality firms, despite being one of the fastest growing sectors in the country.
He said: “Times are tough. It’s a bit of curate’s egg where the last ONS data, which came out a week or two ago, showed that actually hospitality and food & beverage was the fastest growing sector in the economy at the moment.
“But there is no doubt that some of that feels like empty carbs because of inflation pushing up the cost of doing business past the point where they can pass it on to consumers.”
Meanwhile, UKH chief executive Kate Nicholls shared on X, formerly Twitter, that halving the National Insurance threshold would be “most impactful” and should be “delayed” to bring inflation back under control.
