Manufacturers increased prices at the highest rate on record last month in the latest sign that rising coats are feeding through to balance sheets.
The survey by trade body Make UK and accountants BDO showed 58% of manufacturers had increased prices at the beginning of 2022, against 51% in the same period last year and the highest figure since the survey began in 2000.
The survey, polling 287 companies, took place between 1 February and 21 February, and does not yet take account of the commodities crisis following Russia’s invasion of Ukraine.
"Companies are now facing eye-watering increases in costs which are becoming a matter of survival for many," said Make UK chief executive Stephen Phipson.
"While some of the increases are driven globally, the government cannot use this as a shield from the fact some are self-imposed and, added together, are now forming a perfect storm for companies."
Phipson called on Rishi Sunak to increase tax relief for businesses and extend a two-year tax incentive for business investment currently set to expire in 2023 when the Chancellor delivers his Spring Statement next week.
The survey showed outputs and orders began to contract but were still relatively strong, reflective of UK PMI which continues to expand but at a slower rate than December’s record levels.