Figures published by the Office for National Statistics (ONS) show the Consumer Prices Index (CPI) rose to 3% in January, up from 2.5% in December, it’s the highest level in 10 months.
A jump in the cost of meat, bread and cereals was noted by the ONS as contributing to the rise.
UKHospitality has warned that the Government’s planned rise in NICs for employers, which will see the threshold that businesses start paying National Insurance on a workers' earnings lowered from £9,100 to £5,000 and the level of contribution rise from 13.8% to 15% in April, could lead to further rises in inflation in the months ahead.
The trade body has estimated the changes will cost the sector £3.4bn.
“This a worrying jump in inflation and should act as a stark warning of what is to come,” says Kate Nicholls, chief executive of UKHospitality.
“Venues are already being forced to put up prices in preparation for the increases and will undoubtedly continue to do so, as businesses have reached the limit of what they can absorb.
“Avoiding this is simple – delay the regressive changes to the employer NICs threshold, thereby allowing hospitality businesses to continue on a path of growth.”
UKHospitality has previously suggested measures that it said could help mitigate the impact of the employment tax measures.
They include creating a new employer NICs band from £5,000 to £9,100 with a lower rate of 5%; and implementing an exemption for lower band taxpayers working fewer than 20 hours per week.