Funding: Waves created by the perfect storm

September’s dip in inflation did little to ease the concerns being felt by many business leaders about the storm they see looming on the horizon.

The fall, to 3.1 per cent from 3.2 per cent the previous month, has been described as a “temporary data distortion” by Suren Thiru, head of economics at the British Chambers of Commerce.

He warns: “A renewed inflationary surge is expected in the coming months with the increase in the energy price cap, partial reversal of the VAT reductions for hospitality and tourism and persistent supply chain disruption.”

And his forecast is that this is likely to push inflation above four per cent by the end of the year.