LONDON, October 5 (Hfrance.fr) - More UK manufacturers are planning to raise prices than at any time over the past three decades, according to a survey that has added to signs of growing inflationary pressure in the world's fifth-largest economy.
The net balance of industrial companies planning to increase their prices rose to + 60% in the latest quarterly survey of British Chambers of Commerce, compared to +57 % in the second quarter and the highest since the start of the survey in 1989.
The share of services firms anticipating price increases were the highest since 2008 at 38%.
The Bank of England is watching for signs that the recent rise in inflation in Britain may turn out to be longer-lasting than he had expected. He said the case for a first rate hikesince the onset of the coronavirus crisis appear to be strengthening.
"Acute supply shortages and rising raw material costs has led to a surge history of inflationary pressures in the third quarter "said Suren Thiru, chief economic officer of the BCC.
But there is little evidence that a Higher inflation is fueling a large increase in wage settlements, meaning the BoE should have enough leeway to keep interest rates stable over the medium term, Thiru said.
The share of BCC member companies reporting higher domestic sales during the July-September period rose to 47% from 44% in the second quarter, which Thiru says represents a "modest and disappointing increase".
The survey revealed that 27% ofrecoveries invested in the third quarter, unchanged from the previous three months, which the BCC said was "another disturbing warning sign for a longer-term recovery.
In April, Finance Minister Rishi Sunak introduced a big tax incentive to try to encourage companies to invest more.
The online survey of 5,737 companies was conducted between August 23 and September 13. Written by William Schomberg Edited by Mark Heinrich
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