Sumary of ‘There is nothing that hasn’t gone up’: how rising costs are hitting UK businesses:
- Inflation has barely stirred for most of the 14 years since the start of the global financial crisis.
- Yet the coronavirus pandemic has disrupted almost every aspect of the global economy, and businesses are having to face up to what to many feels like an unusual phenomenon: rapidly rising prices.
- A year ago independent economists polled by the UK Treasury expected consumer price index inflation to reach only 1.9% by the fourth quarter of this year.
- The price has almost doubled since his last purchase, and recently touched £700 a tonne, leaving him and other farmers in a tough position.
- “We can’t buy at that price, and we will have to a make decision whether to buy half as much as we have bought in the past and stretch it out,” he says.
- Inflation pressures are adding to other difficulties such as the return of VAT to the 12.5% level, after a reduction to 5% allowed by the chancellor during the pandemic, and the return of business rates payments, Worsley says.
- Rising energy prices will hit soon when contracts come to an end, and one pub that relies on liquid petroleum gas deliveries has seen prices rise from 35p a litre to 44p a litre.
- “It may be we have to reprint our menus every two or three weeks,” he says, adding that prices could also go down if pressures ease.