Figures from the Office of National Statistics today show that CPI annual inflation was 3.7% in December, up from 3.3% in November. RPI annual inflation was 4.8%, up from 4.7% in November.
Contractors are particularly concerned that these increases come from price rises in fuels and lubricants, which rose in December by 2.8%, the largest rise for a November to December period since 1996.
Rosemary Beales, CECA National Director, said: “Today’s inflation figures will be very concerning to contractors, who are still struggling with rising costs and shortages of workload as the industry slowly comes out of recession.
“With fuel now hitting record highs, contractors will see their businesses suffer further increased costs at the beginning of 2011.
“Cost inflation is not an issue that is going to go away in 2011. It is therefore vital that the whole industry works together to manage its impact. Failure to do so will threaten both businesses and projects nationwide.”