Record number of manufacturers increasing their prices, raising fresh fears about cost of living

 A record number of manufacturers are increasing their prices, raising fresh fears about the cost of living. 

Factories have been hit by higher costs as the pandemic boosted demand for materials, lockdowns wreaked havoc with supply, and logistics firms struggled to find staff. 

Some 52 per cent of manufacturers are reporting higher prices for UK goods in the fourth quarter, according to the industry body Make UK and accountancy firm BDO, up from 50 per cent in the third quarter – the highest balance since the survey began in 2000, and up from just 5 per cent before Covid hit. 

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Record numbers: Some 52 per cent of manufacturers are reporting higher prices for UK goods in the fourth quarter

A balance of 58 per cent expected prices to increase further in the first quarter of 2022. 

Richard Austin, of BDO, said: 'Orders and output are still very positive... but costs pressures are settling in for the long haul.' The Bank of England will make an announcement on interest rates on Thursday. 

Despite inflation fears, traders expect rates to stay at 0.1 per cent to prevent the Omicron variant derailing economic recovery.