affordable. the prices will not suddenly go down but theyjust might become more affordable. we have a lot of hurdles to clear. you cannot fail to notice it is very cold at the moment and the government s support for energy bills will put pressure on inflation. as will be the increased problems in china with covid and the supply chain. and half of the country is on strike at the moment. that heads domestic products, hits working people so they have less money. and if people on strike and that with higher wages it puts more pressure on inflation and we could end up in a big spiral. we know the bank of england is going to look at interest rates tomorrow, will it at the rate up again in response to this latest data? we wait to see. finally, we hear a lot from the government about global pressures on the economy, how is the uk doing in terms of its rate of inflation, the rate at which prices go inflation, the rate at which prices 9° up inflation, the rate at which prices go up compared to
defence. let return now to inflation. as prices are slowing down, people are still feeling the pinch because of the cost of living crisis. let s find out about businesses, the british chambers of commerce saying this is the number one concern, the inflation rate. let s find out how some of them are coping. i can now speak to cheryl taylor, she is the owner of mellors coffee shop, in romiley, stockport. how is business this morning? it is alwa s how is business this morning? it is always slow how is business this morning? it is always slow on how is business this morning? it is always slow on a how is business this morning? it 3 always slow on a frosty morning, but it is steady and people coming in for a hot chocolate this morning. the cbi say inflation is the number
fairly regular acknowledgement in government that they are not going to be able to remove all of the disruption completely. as was said in the clip you just played, a lot of work has gone into figuring out exactly what that disruption is but fundamentally it is going to happen. it is interesting the context this morning, anita, the inflation figures you were talking about a few moments ago get to the heart of what is going on. the government is reacting to those figures by saying the absolute priority is to get inflation down. the treasury believes if you have high pay increases it will make the job of reducing inflation harder. at the same time, unions are saying inflation is over 10%, we need rure rises that start to reflect that to make sure our members can keep up with the rising cost of living. at the moment they are pretty in
course the difficulties in relation to trade have not helped, in fact, they have made matters worse. i want to brint in they have made matters worse. i want to bring in the they have made matters worse. i want to bring in the subject they have made matters worse. i want to bring in the subject of they have made matters worse. i want to bring in the subject of strikes, i to bring in the subject of strikes, it is all very closely linked, isn t it? the government says public sector pay rises would slow down the rate at which inflation falls. do you accept that view that public sector pay rises could drive inflation. element the way i approach it is this, given inflation is more than 10%, whether you work in the public sector or private sector, people were very concerned about the way in which their wages are being eaten by inflation. ii are being eaten by inflation. if they are not getting wage rises. in they are not getting wage rises. in the private sector we have seen mcvitie s b
starting to emerge. a question over whether we will starting to emerge. a question over whether we will see starting to emerge. a question over whether we will see any starting to emerge. a question over whether we will see any noticeable | whether we will see any noticeable impact on the cost of living crisis overall, is that what you are saying? overall, is that what you are sa in: ? , ., ., , saying? yes, we will not immediately see a big difference. saying? yes, we will not immediately see a big difference. remember, - see a big difference. remember, inflation is still going up and it is the pace at which prices are rising. the drop in inflation is not necessarily a drop of things in the shops. if you take a tub of margarine, 18 months ago that would have been about £1, now it is about to pounce. it is not suddenly going to pounce. it is not suddenly going to go down to £180, it will go up a tiny bit less and hopefully wages will catch up. we found out yesterday average w