Prices rose to record highs, CBI warns

Since the record began in 1975, the proportion of manufacturers expected to raise prices has reached an all-time high.

A recent monthly industry trends survey from the CBI found that there would be planned price increases over the next three months, indicating a sharp rise in inflationary pressures on UK companies.

The employers’ organization, which received 229 business responses, found an 80 percent net balance, which increased the price of orders booked for the next three months from March compared to 77 percent last month.

The question, which was first asked in January 1975, excludes the number of companies that would lower their prices because they would raise prices from them.

Businesses are also told that output volumes have been growing at a “strong pace” for three months since March. The survey found that manufacturers reported a higher order book this month, a combined record share, with the net balance matching the November record high of 26 percent.

Anna Leach, deputy chief economist at the business group, said: “This survey highlights strong order books and output growth, but also the increasing cost pressures faced by manufacturers due to the conflict in Ukraine.

“The government must use the spring statement to provide relief to both energy-intensive industries and vulnerable consumers. To make a fundamental restoration of UK growth, we need to take significant steps to encourage investment. “

Gabriella Dickens, a senior UK economist at Pantheon Macroeconomics, said a recent survey by employers’ agencies showed that “demand for manufactured goods has continued to strengthen, although rapid inflation threatens to weaken recovery.”

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