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Business in U.K. are Projected to Hike More Prices Ahead

News   •   Jan 27, 2018 13:39 EST

Businesses in UK are sending out warnings about more hikes in prices in the coming period, according to a new survey conducted by the British Chambers of Commerce. ‘

The ratio of services companies are projecting to increase the prices in the coming three months reached its peak since 2008 last quarter, as per the findings of a report by a lobby group on January 10, 2018. This accounts for a balance of nearly 36 percent. Among the leading manufacturers that figure climbed up to 50 percent from the initial 35 percent.

The inflation in the U.K. has grown with a rapid pace in more than five years back in November, propelled by the devaluation of pound since the declaration by the Britain to move out of the European Union.

Suren Thiru, the head of the economics department at BCC said that while the inflation is projected to continue to increase in the coming months, it is possible to remain adamantly above the 2 percent inflation target set by Bank of England for a longer period of time. The economy of the U.K. is expected to continue growing in an underwhelming manner in the near future with the unpredictability of the overall impact of Brexit coupled with the high rates of inflation and weakened productivity.

The survey conducted by British Chambers of Commerce found that the business are also facing a dearth of skilled labors. The survey also found that nearly 71 percent of service sector companies are trying to hire are facing difficulties.