Impact of inflation - responses from all sectors

"It is the perfect storm for small businesses. We are receiving letters from almost every supplier warning of impending price increases due to rising costs of raw materials, which they are now passing onto us, and which we also have no choice to pass on to our customers. Slim margins and little buying power from a small indie will only further increase the gap between the online giants who can often afford to buy larger quantities and take the hit of price hikes. In a world where people expect fast, efficient service at the lowest price possible, small indies like us will struggle to meet these expectations, combined with the fact that many products have been unavailable for months. The rate at which inflation is rising is gravely concerning."

"Inflation is a real concern and while, at the moment, we are holding our prices firm, I can see that by later in the Spring we will need to increase them. Brexit may be one factor in soaring inflation but I think by far the biggest impact on supply — and therefore prices — has been Covid-19. No one had it factored into business plans, it took everyone by surprise, demand stayed level but supply got constricted, so prices went up. In that sense it's 'O' level economics. Part of the problem is that we have become used to a low inflation, low interest rate economy. We all knew it would cycle around eventually, it always does, but we had it for so long many of us have forgotten what inflation feels like. We're now getting a sharp reminder."

"I absolutely hate raising our prices but the reality is we are being left with no choice. The vicious cycle of our suppliers having to pay more for all aspects of production leads to daily emails of price increases that put even greater strain on our business. We're not talking about profits any longer as it's a fight to survive rather than make money. We are reviewing our prices again in February. it's inevitable that we'll be hurting our own customers further with prices rises as we have no other choice."

"Our latest research shows that employees are increasingly concerned about the effect of rising inflation on their pay. Inflation is eating away at wages at a brutal pace we haven't seen for many years. Lower income workers are being hit particularly hard, especially as the cost of fuel and electricity rises. If employers don't want their workers joining the Great Resignation, they need to pay attention to inflation and increase wages to keep their pay competitive.”

"Rising inflation is hugely concerning for business owners and presents another formidable obstacle for them to overcome following two years of reduced operations due to Covid, staff shortages and supply chain issues. Throw Brexit into the mix and this really does become a vicious cycle for many. Materials shortages and rising costs can means reduced business levels, which impacts income and provides less headroom for growth and recovery. The SMEs we serve are incredibly resilient and the classic British “keep calm and carry on” attitude if fortunately prevailing, for now at least. Supportive and flexible funding is really what keeps heads above water and with the Bank of England expected to raise rates again in February, this has never been more important."

"The diabolical double act of the pandemic and Brexit have served up a stagnant economy and soaring inflation. Put simply, the cost of making, or buying, anything is rising fast, and people are not earning any additional money to pay the increasing cost. It's a complex problem, and all the potential solutions are painful."