Former CBI chief says consumers squeezed by worse than I have ever known

The former chief of the Confederation of British Industry CBI and founder of Cobra Beer said consumers are being squeezed by worse than I have ever known.

Speaking on BBC Radio 5 Lives'Wake Up to Money programme, Lord Karan Bilimora was asked about the impact of industrial action this month, with workers from sectors from telecoms to public transport set to walk out.

The businessman dubbed strikes as very damaging for everyone and said they should be the last measure. He noted that consumers were currently being squeezed so badly, worse than I have ever known in my three decade business career. The cost of living costs have gone up in the last few months while wages have not increased at the pace of inflation.

Bilimoria warned of the dangers of a wage price spiral and said that there was a concern that the government could create more inflation with its measures.

In a classic environment, if you were in a classic environment, you would increase inflation. In today's environment, demand is being squeezed because consumers are being squeezed. He said that many of the factors that drive inflation were out of the control of the UK government, pointing out the war in Ukraine and high global energy prices.