North Yorkshire businesses put expansion plans on hold amid rising costs
Shop owners say a rise in inflation is squeezing profits
Businesses in North Yorkshire say rising costs means they're holding off on expanding....
Price rises went up to 3-percent in January - the fastest rate in 10 months.
Hazel Berry runs H2K Botanicals - a health and beauty shop in Harrogate: "The extra costs that have been incurred as a result of the inflation will massively affect us in terms of expansion. We're spending more money on our existing products and staff and those will have a huge impact on how we invest moving forward."
Fiona Burks runs Yarn etc - a wool shop in Harrogate and says they're really feeling the squeeze. "The cost of our products have gone up for me to purchase in by 7-10%, rent has gone up quite a substantial amount this year, so that's all to be taking into account really and income coming in isn't necessarily any better than it was last year."
UK inflation jumped more sharply than expected at the start of the year.
The Office for National Statistics (ONS) said on Wednesday that Consumer Prices Index (CPI) inflation rose to 3% in January from 2.5% in December.
This marks the highest reading since March last year.
Plane fares, rising food costs and a sharp jump in private school fees all contributed to the rise in living costs.
The latest reading was higher than predicted by analysts, who had forecast a rate of around 2.8%.
Treasury officials said the fresh figures showed that the path to the 2% inflation target will be "bumpy".
Treasury minister James Murray said: "The Bank of England's been clear that they expected inflation to be slightly higher in the first half of this year, while still being on target to go down towards its 2% target rate.
"So we know that the road is going to be bumpy toward getting to that target, the Bank of England has been clear about that.
"But we're confident in our plan for change to make sure that we're kick-starting economic growth by making the reforms the necessary to boost economic growth, right across the country."