Responding to the latest inflation data, published by the Office for National Statistics, Stuart Morrison, Research Manager at the British Chambers of Commerce said:

“Today’s data is a stark reminder that the UK inflation waters remain choppy.

“With CPI rising to 3.4% in December, it’s clear the path to hitting the Bank of England’s 2% target will have further twists and turns. Hopes of another interest rate cut at the start of February now look very unlikely.

“Our latest survey shows inflation remains a key concern for businesses cited by 56% of respondents. The threat of more US tariffs in the coming weeks will only increase price concerns among the firms we represent.

“Business confidence remains weak, and the Budget was a missed opportunity to turbocharge the economy. As firms look ahead to uncertain 2026, they need the Government to deliver on growth. That means action to boost investment, transform productivity and support trade.”