The cost of living rose to 3.2% in August.
Since economic demand rebounded, the supply of goods and labour has not.
Supermarket supply chain issues were first affected by Covid 19 isolation requirements, and now new immigration policies and lack of HGV qualified drivers.
I was told by local Co-op, how some food outlets are using large van drivers to get around this, but that will mean more small journeys - not good for the carbon footprint!
Higher food prices (including those in restaurants) and increased public transport costs have also contributed to the rise in inflation.
Used car prices have risen by more than 18%, owing to a shortage in new vehicles.
Home energy bills are now expected to rise with the latest news of an increase in wholesale gas prices potentially squeezing out smaller suppliers.
The Government predict this spike in inflation to be transitory, as problems with supply chain issues fall away during the beginning of 2022, but it does appear to be more than a short term problem!
Employers in some sectors including logistics, hospitality and electrical engineering have felt the effects of workforce shortages and increased their starting salaries by between 10-20%.
Has your business been affected?
The BBC produced this interesting article https://www.bbc.co.uk/news/business-58563417 on current inflation activity.