Figures from the latest British Chambers of Commerce (BCC) Quarterly Economic Survey show that inflationary pressures on firms stand at levels never previously recorded during the survey’s 33-year history.
In the first quarter of 2022, 62% of firms said that they expect their prices to rise in the next three months; this was up from 58% in the final quarter of last year and the highest figure the survey has ever recorded for this metric. Furthermore, only 1% of businesses said that they expect to decrease their prices.
The survey also revealed the strain that cost pressures are placing on firms; when asked what was more of a concern to their business than three months ago, 77% of firms cited inflation. Once again, this was the highest figure on record and a significant rise from the 66% who mentioned this option in the previous quarter.
BCC Director General, Shevaun Haviland, commented: “Our latest survey lays bare the huge financial stress that firms across the country are under. The level of inflationary pressures has soared to record levels and we are now truly in uncharted territory. We need to be absolutely clear: this cost of doing business crisis is squeezing firms’ finances, driving further increases in prices and directly fuelling the cost-of-living crisis.”