The warning came after the latest Office for National Statistics (ONS) figures showed Consumer Prices Index inflation rose to 2.9% in July, up from 2.6% in June.
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This increase was driven largely by housing and household services, particularly gas and electricity, following changes to the Ofgem energy price cap.
Gas prices rose 14.7% in July, while electricity prices increased 3.6%, according to the ONS.
Cost pressure
NTIA chief executive Michael Kill said the figures were “deeply concerning” for night time economy businesses, particularly with energy costs a significant contributor to the rise.
He said: “For hospitality and night time economy businesses, this creates pressure from both directions. Operators continue to face substantial costs across energy, employment and business rates, while rising household bills further squeeze the disposable income that drives consumer spending.”
The warning follows recent analysis from Nationwide Energy Consultants, which said wholesale gas had eased from its late July peak after Gulf peace talks, but warned supplier price books were still catching up with July’s spike and pubs renewing contracts this autumn could remain exposed to volatile rates.
Kill said the impact of energy costs on inflation reinforced the need for greater stability and affordability for both businesses and households.
He added: “Government has made economic growth a central priority, but growth cannot be achieved without addressing the cumulative pressures facing businesses on the ground.
“Ahead of the Autumn Budget, we need a coordinated approach to energy costs, business rates and the wider cost of doing business, alongside measures that protect consumer confidence and disposable income.”
Food inflation
The figures come as operators continue to warn of pressure across energy, labour, rent, food and drink costs.
ONS data showed inflation in restaurants and hotels eased to 4% in July, down from 4.4% in June.
However, the Morning Advertiser (MA) reported yesterday (18 August) that foodservice inflation rose 0.2% month on month in July, with buyers warned not to be complacent as drought conditions threaten domestic vegetable yields and global grain markets react to geopolitical pressure.
Kill finished: “The night time economy is a vital part of the UK’s economic and cultural infrastructure. Businesses need the stability and confidence to invest, employ people and grow.”
