UK companies hiked their prices at the fastest rate on record last month, as the energy crisis and staff shortages hit the economy and push up inflation.
Severe supply constraints created escalating inflationary pressures last month, with service sector companies reporting the slowest rise in new orders since March (after the winter lockdown).
Rapid rises in fuel, energy and staff costs were passed on to customers in September, with the ‘rate of prices charged inflation’ accelerating sharply to the highest since the data began in July 1996.
That’s according to the latest IHS Markit/CIPS UK Services PMI, a closely-watched survey that tracks the economy.
Service sector businesses “widely noted” that supply problems, higher transport costs and rising salary payments had all added to inflationary pressures, as customer demand recovered.
That may show that firms are lifting pay to attract and retain staff. It…