A study published on Monday revealed that the number of British manufacturers raising prices has reached its highest level since at least 2000, highlighting the Bank of England’s inflation struggle.
According to Make UK and BDO, a net balance of 58 percent of manufacturers raised their prices in early 2022, up from 52 percent at the end of 2021, the fifth quarterly increase in a row.
It was the highest reading since the survey began asking about costs in 2000, with domestic prices growing quickly even before Russia’s invasion of Ukraine had an influence on oil prices.
The study of 287 businesses was performed between February 1 and February 21.
Before the epidemic and Britain’s exit from the European Union’s single market in late 2019, the balance was only +5, according to Make UK.
“Companies are now facing eye-watering cost rises that have become a matter of survival for many,” said Stephen Phipson, chief executive of Make UK.
“While some of the increases are globally driven, the government cannot use this as a cover from the fact that some are self-imposed and, when taken together, are now generating a perfect storm for businesses.”
He urged Finance Minister Rishi Sunak to use the March 23 budget update to assist employers by providing further tax relief and extending a two-year tax incentive for company investment that is set to expire in 2023 as a start toward making it permanent.
The IHS Markit/CIPS PMI, a different measure of manufacturers, reached a record high in December and has since fallen somewhat.
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