37% of businesses report higher prices

Prices of materials, goods and services increased faster than usual in October 2021, data from the Office for National Statistics (ONS) shows.

Nearly two fifths (37%) of businesses reported the prices of materials, goods and services purchased last month had increased more than their normal prices fluctuations.

This has increased from 21% in late May 2021 and 15% in late December 2020.

Industries hardest hit were construction (67% of businesses) and manufacturing (66% of businesses), the ONS said.

Some of these prices are being passed on to consumers, with 15% of businesses reporting they had increased the price of goods and services they sold in October, up from 11% in September 2021 and 4% in December 2020.

Retail had the highest proportion of businesses (29%) that reported an increase in prices of materials, goods and services they sold to their customers, followed by the manufacturing industry (28%) and the construction industry (24%).

The recent rise in prices has contributed to the rising inflation rate which, as measured by the Consumer Prices Index, stood at 3.1% in September 2021.

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