Tim Roberts, UK Country Co-Leader & Partner and Managing Director at AlixPartners, comments on the UK monthly inflation figures

"Today’s uptick in inflation highlights that upward pressures on prices are persisting, with ongoing wage growth and difficult supply chain issues keeping costs moving upwards. Despite some cooling in global commodity prices and a more stable energy market, there are still strong inflationary forces. The technology sector is therefore feeling the strain, especially as new regulatory requirements are emerging or coming into force in multiple jurisdictions.

“The tech sector has already been faced with cost increases due to supply chain issues and semiconductor shortages, but new laws and regulations, including the EU's Digital Services Act and AI Act, and plus emerging UK regulations on data protection and AI, are poised to add to compliance costs for firms operating in the tech sector.

“As we approach the end of the year, businesses and consumers will both continue to feel the squeeze, and these regulations, while essential for safeguarding consumers, will place an additional burden on businesses that cannot find efficient ways of accommodating new controls and governance. So innovating for efficiency will be essential to find a balance between immediate cost savings and long-term resilience.”