Fewer UK Businesses Report Rising Input Costs in July 2026

ONS data shows 27 per cent of trading businesses saw higher prices for goods and services bought in July 2026, down 3 percentage points from June and continuing a typical summer decline after spring peaks near 40 per cent.

Just over one in four UK trading businesses — 27 per cent — reported an increase in the prices of goods and services bought in July 2026, according to figures posted by the Office for National Statistics. The figures show a fall of 3 percentage points compared with June 2026, when 30 per cent of trading businesses reported rising input costs. That June figure was itself 5 percentage points higher than the same month in 2025, meaning year-on-year pressure remains elevated even as the summer brings some relief.

The spring peak was sharper still. Around 40 per cent of trading businesses reported rising input prices in both March and April 2026 — the highest proportions since December 2022, and 11 percentage points above February. By May the share had eased to 37 per cent, then 30 per cent in June, and now 27 per cent in July. ONS says the pattern mirrors previous years, where the proportion reporting higher input costs tends to peak in March or April before falling through the summer months.

That downward trajectory won’t feel like full relief for every sector. Construction businesses have faced the steepest pressure — around 53 per cent reported increases in prices of goods and services bought in the most recent ONS bulletin citing sector-level data. In accommodation and food service activities, about 27 per cent of businesses reported higher prices for goods or services sold. Both sectors are well represented across Kent, where construction activity and tourism-linked hospitality are significant parts of the local economy.

For Kent firms, the national figures are the closest available guide — ONS publishes BICS data at UK level and does not routinely break down county-level price-change percentages. But the direction of travel matters. Any easing in the share of businesses facing rising input costs may help slow further price increases for consumers locally, though price rises linked to the spring peaks may already have fed through to goods and services on shelves and menus.

And new businesses keep entering the market despite the pressure. ONS activity, size and location statistics show 79,325 businesses were added to the Inter-Departmental Business Register in Quarter 2 2026, up 2.2 per cent compared with Quarter 2 2025.

ONS classifies BICS results as official statistics in development — produced to official standards but still being refined. The survey is voluntary and weighted by business size and sector, so the figures are indicative trends rather than precise counts. Critics note that even at 27 per cent, more than one in four trading businesses still report rising input prices, and that the severity of individual cost increases isn’t captured in the headline proportion.