LONDON (BLOOMBERG) – The British Chambers of Commerce said 80 per cent of UK businesses are feeling the effects of higher prices as well as shortages of goods and workers, a finding that adds to concerns about inflation.
The lobby group said its survey of 1,000 companies showed 80 per cent saw an increase in their prices in the past year and almost half said those gains were significant.
The figures add to evidence that inflation is picking up, which the Bank of England has said is likely to result in higher interest rates in the coming months. Companies cited rising costs of vehicle fuel, shipping containers, electricity and natural gas as the biggest burdens.
“These figures present a deeply worrying picture of the difficulties that businesses are currently facing,” Shevaun Haviland, director general of the BCC, said in a statement on Thursday (Nov 11).
Steel costs were cited by half of manufacturers, while paper, plastics, chemicals and semiconductors also registered as in short supply.