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Highlights
- The Office for National Statistics (ONS) reported 10 per cent of UK businesses had raised their prices to pass on rising costs in wages, raw materials and other areas to customers to withstand inflationary pressures.
- A culmination of rising gas prices, ongoing fuel shortage and other factors have added to a cost of living in the UK.
The UK’s government statistics body, the Office for National Statistics (ONS), has released a business survey result, according to which more and more British companies are increasingly passing on the rise in costs to their customers.
About 10 per cent of UK businesses raised their prices, according to official data by the ONS.
UK businesses hit by rising prices
As per the latest ONS business survey, 29 per cent of British firms had faced an above average increase across various aspects of their businesses, including the rising cost of materials and goods & services.
The survey found that companies operating in the construction, services and manufacturing sector were among the most affected by the rise in p
How are businesses handling UK’s rising cost pressures?
It was the reason that about 10 per cent of UK companies had reported raising prices last month, compared to 8 per cent in August and only 4 per cent in December.
Of the nearly 10 per cent businesses which had raised prices in September, 23 per cent were wholesale, and consumer focused retailers, while 25 per cent were a part of the manufacturing industry.
Thus, as companies struggle with coping against rising costs across wages, energy and other areas, they are passing on the price hike to their customers in order to withstand inflationary pressures.
UK’s emerging cost of living crisis
The UK has been grappling with a multi-industry supply chain bottleneck issue. Furthermore, the recent energy crisis and rising inflationary concerns have added to an emerging cost of living crisis in the UK, which has caused prices to rise across the board.
Gas crisis
Wholesale natural gas prices have soared in recent weeks due to a host of factors, including recovery in global demand, low supply from Russia, low wind output in the months of August and September, low reserves and more.
Gas prices peaked on Wednesday and subsequently dropped after Russia’s President Vladimir Putin agreed to help stabilise the energy market.
The UK’s business secretary also stated that the UK plans to accelerate its carbon transition and pivot faster towards renewable energy to ensure energy security and protect against gas price shocks.
A recent report found average energy bills are set to rise by 30 per cent by the next year due to the energy crisis.
Fuel crisis
Moreover, petrol prices have also neared record highs as a supply squeeze of lorry drivers has impacted petrol availability across the UK.
The lack of fuel supply had caused panic buying and chaos at forecourts, which were running empty.
The UK deployed military assistance earlier this week to aid fuel deliveries and help ease the shortage.
The government has also eased its visa rules, granting temporary visas for HGV qualified drivers to enter the UK to aid with the driver shortage.
Overall price rise
Businesses across car retail, high street fashion and others have also cautioned of upcoming price hikes.
Moreover, an ongoing staff shortage is further weighing on the rising price pressures. About 41 per cent of firms reported facing a staff shortage in September, compared to relatively normal levels of expectations in the previous year.
