Waterlooville entrepreneur fears 'bleak' winter for businesses as inflation rates soar

According to the Office for National Statistics, food and energy costs continue to be the largest contributors to inflation with prices increasing 2 per cent between September and October.

Inflation for food and non-alcoholic beverages hit 16.4 per cent with the price of milk, cheese and eggs providing the biggest contribution.

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Households were paying almost 90 per cent more for their electricity, gas and other fuels in October 2022 compared to the previous year, despite the government’s energy price guarantee.

Businesses are also feeling the pinch. Combined with the business’s costs increasing, consumers are spending less, concentrating their spending on essential items rather than on retail or hospitality.

Sara Hall, founder of Waterlooville-based The Silk Purse Guild said: ‘Two years into my small business and I feel like I've been dragged through a hedge backwards. The pandemic was brutal, but the economic crisis feels worse.

‘Sales are down in the gift industry across the board and each day that passes brings more and more bad news for small, home-based, artisan business owners.

‘All of us are facing huge price increases in overheads, as well as overnight price hikes on basic materials. One seller reported a 45 per cent increase in the cost of his canvas. Passing that cost onto his customers just isn't an option.

‘Energy prices are going up monthly and the hits just keep coming. Small businesses are being battered and the outlook for winter is already bleak, with our customers cutting back on gifts for Christmas.’