According to the British Chambers of Commerce, nearly two-thirds of British manufacturers are planning to raise their prices in the run-up to Christmas due to rising inflation.
The survey found that 62% of industrial companies expect to increase their prices in the next three months – the highest result since data collection began in the late 1980s and well above the previous record of 38% in 2008.
The results suggest that families are poised for a Christmas crisis of rising costs as they prepare for what is already the most expensive time of the year.
Analysis of price increases over the past year shows the cost of a used car has risen by more than £1,600, a tank of fuel has risen more than £10 and the price of a pint of beer is creeping up close to £4
A host of large companies have warned of inflationary pressures from labor shortages, rising energy costs and gaps in global supply chains, including Greggs, Hotel Chocolat and consumer goods giants Unilever and Reckitt.
“Acute supply shortages and rising raw material costs led to a historic rise in inflationary pressures in the third quarter,” said Suren Thiru, chief economics officer for the BCC.
Greggs released its results yesterday, warning that despite encouraging sales, it was facing increased costs due to staffing and food ingredient shortages.
Hotel Chocolat – which has more than a hundred stores in the UK – said prices to customers would rise to 9% across most of its range due to more expensive ingredients, labor and transport.
Exclusive research for the Daily Mail by the Center for Economics and Business Research (CEBR) reveals how inflation will cost the average family of four an additional £1,800 by the end of this year, while a retired couple can expect to see the cost of living with over £1,100, and a lower-income couple can be stabbed by nearly £900.
Meanwhile, a Money Mail survey today reveals that one in two households has already started austerity amid concerns about the rising cost of living.
Families that have endured Covid-related uncertainty for the past 18 months are now facing a triple blow from rising energy bills, rising food prices and incoming tax hikes.
But while many Britons fear a financial blow, Prime Minister Boris Johnson yesterday insisted he’s not worried about rising prices because he thinks they will be temporary, stressing that it’s “not his job” to control every aspect of supply chains. in the UK.
Asked about the situation at the Conservative Party conference, he told the BBC: “Actually, I think people have been worried about inflation for a long time and it hasn’t materialized.”
A host of large companies have warned of rising costs due to labor shortages, rising energy costs and gaps in global supply chains, including Greggs
When he was urged about the UK’s shortage of truck drivers, he tried to divert attention back to the private sector, saying ‘it’s not the government’s job to come in and try every problem in business and industry. to solve’.
Referring to Margaret Thatcher’s statement from the 1980s – which she ironically used to emphasize the need to control inflation in a market economy – Mr Johnson said: ‘In a famous sentence, there is no alternative. There is no alternative.
“The UK must – and we can – do much, much better by becoming a higher-wage, higher-productivity economy.”
But he admitted Christmas could only get better from a “low base” for fear of lingering shortages — after it was effectively canceled during the pandemic last year.
Outraged business leaders accused the prime minister of ‘waiving’, while cabinet ministers told MailOnline they were concerned that ‘complaint’ about inflation was creeping in.
In a stark warning of the bumpy road ahead this winter, the Bank of England has already indicated inflation could reach 4 percent by the end of the year, while supermarkets say food prices could rise 5 percent.
The energy price cap has now also been raised, raising bills for more than 15 million households by an average of almost £140 a year.
And the rising cost of wholesale gas has caused many suppliers to go out of business – forcing millions of customers with cheap deals to charge more expensive rates tied to the price cap.
Meanwhile, new figures show that pump prices have reached 136.10 pence per litre, the highest level since September 2013.
As the cost of living is skyrocketing across the country, consumer surveys show that as many as half of Britons have already started austerity measures, fearing they will now have to shell out a little extra to save for what could be a pricey Christmas. could be.
Others have started shopping early — hoping to beat the price hikes — with Aldi already selling 1,500 frozen turkey crowns a day, while Christmas pudding sales are up 45 percent.
A survey conducted by Consumer Intelligence found that many had begun to cut spending in the past one to three months, with most fearing rising food and energy prices.
Meanwhile, analysis of price increases in the past year alone shows that the cost of a used car has risen by more than £1,600, a tank of fuel has risen more than £10, the price of a pint of beer is creeping almost £4 and a bottle of prosecco is up 55 pence to £8.
The new month of October also marked the end of the leave pay support scheme and the withdrawal of an additional £20 a week for troubled families receiving Universal Credit.
The bottom line is that in a series of interviews ahead of his keynote speech at today’s Tory conference, the prime minister denied that the country is in a “crisis”, comparing the disruption to a “giant awakening” and “cracking.” ‘ after the pandemic.