One-tenth of UK companies raising prices as costs rise: Official data

According to official data, one-tenth of UK companies have raised prices to offset the increased costs caused by the supply chain crisis.

In the last two weeks, 10% of UK companies have reported that the prices of goods or services sold have risen above normal price fluctuations. National Bureau of Statistics (ONS) Thursday.

Nearly one-third (29%) of companies find that costs for materials, goods and services are higher than normal, with construction, service and manufacturing companies suffering the worst.

This happens amid rising signs of inflation rampant in the UK, with energy prices skyrocketing and prices more commonly rising in the economy.

Price increases are exacerbated by labor shortages as companies struggle to fill vacancies.

According to ONS data, 41% of UK companies with more than 10 employees reported that it was difficult to fill vacancies last month compared to normal expectations during this period.

Of the companies that reported the impact on imports, 22% said that a shortage of carriers or logistics equipment to transport goods led to business activities in early September, compared to 11% in April. He said it brought challenges.

In a speech at the Conservative Party meeting Wednesday, Prime Minister Boris Johnson defended his strategy of limiting the supply of foreign workers after Brexit, and his government made the country “high wages” and “low taxes.” He said he was trying to move towards. “Economic model.

But a conservative think tank has blown up his economic plan, they say, which only leads to further price increases and worse labor shortages.

The Adam Smith Institute, a free market think tank, described Johnson’s speech as “exaggerated but empty and economically illiterate.”

“Raising the minimum wage risks increasing inflationary pressure and keeping the most vulnerable people out of work,” said Matthew Resch, director of research at the institute.

Even the International Energy Agency (IEA), a conservative think tank that has supported Britain’s exit from the EU, has criticized Johnson for “unnecessarily limiting the supply of labor.”

Mark Littlewood, IEA Secretary, said: Strategies that make things more expensive do not create a truly high wage economy, but merely an illusion. “

PA contributed to this report.

Alexander Chan