1. ITV Report

Inflations figures rise and Midlands businesses feel the pinch

In a bigger than expected jump, inflation now stands at 2.7% Photo: ITV Central

There's bad news on the cost of living today. In a bigger than expected jump, inflation now stands at 2.7%.

The rise in food costs and student tuition fees are being blamed.

The government says the figures are disappointing.

It puts added pressure on household budgets and on the running of midlands businesses.

Tony Deep knows the price of a volatilve food market.

He's the boss of East End foods in West Bromwich in the West Midlands.

An establised and successful business but in 2012 they are facing ever increasing wholesale prices for rice, spices and raw materials. Inevitably there is a knock on for the customer.

He says if something has gone up 30% and we absorb say 5 or 7% of it , the rest has got to be passed on.

The increase in inflation has been spurred by hikes in fuel and power prices and by the decision to treble tuition fees to £9,000 per year.

The government says today's figures are far from ideal, and people in the midlands are feeling the pinch.