UK consumers likely to face higher prices ‘for many months to come’
Summary
UK consumers are expected to face higher prices for several months due to rising costs in energy, raw materials, and shipping disruptions linked to international conflicts. Retailers are trying to offer promotions, but businesses warn that without more government support, prices will continue to rise.Key Facts
- Global shipping problems and high energy and raw material prices are increasing costs for UK companies.
- Shop prices rose by 1.2% year on year in May, with furniture and health products among the items that increased most.
- Supermarket food price inflation was lower at 2.7%, helped by strong competition.
- Only 16% of businesses say they are not affected by the conflict involving Iran.
- 80% of companies have been or expect to be impacted by higher energy costs, shipping problems, and raw material price rises.
- Manufacturing firms are the hardest hit, with most already affected or expecting future impact.
- Three-quarters of companies expect their energy bills to increase over the next year, with some worried about paying them.
- Businesses are asking the government to reduce taxes on energy bills, cut red tape, and provide more financial help.
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