UK factories will raise prices to pass on inflation, according to CBI survey
More UK manufacturers expect to raise their prices than at any time in almost half a century, according to the Confederation of British Industry.
In a survey published yesterday, the business lobby group said 78pc of firms questioned expect to book domestic orders at higher prices in the next three months, with just 1pc anticipating lower prices. The net balance of 77 percentage points was the highest since December 1976.
The report highlights the scale of inflation pressures building in the economy as firms try to cover rising wages bills and raw material costs. That’s quickly feeding into the prices paid by consumers.
The Bank of England is expected to deliver several interest-rate increases this year to put price growth back on an even keel.
The Confederation of British Industry survey was carried out between January 26 and February 14, and 224 manufacturers responded.
It showed a strengthening of factory activity in February, with orders and output both rising at a faster pace in February.