Two in five businesses across Britain saw their costs rise in April, while firms raising their own prices hit a three-year high.
British businesses are facing their steepest cost pressures since late 2022, with new data revealing a sharp acceleration in price rises that could spell higher bills for consumers.
The Office for National Statistics reported that 40% of UK firms saw the prices they pay for goods and services increase in April 2026. That figure stayed roughly flat from March but jumped 11 percentage points from February, when just 29% reported rising costs.
The April reading marks the highest proportion of businesses reporting increased input costs since December 2022, when 41% faced similar pressures during the peak of the cost-of-living crisis.
Businesses start passing costs on
More concerning for households — 16% of companies increased their own prices in April. That’s the highest share since April 2023, suggesting firms can no longer absorb rising costs.
The figures come from the ONS Business Insights and Conditions Survey, a fortnightly poll of UK companies that provides early warning signs of economic trends. The survey excludes financial services and public sector bodies but covers most of the economy.
Energy and shipping costs are driving much of the pressure. Global factors including geopolitical tensions and supply chain disruptions have pushed up wholesale prices across major economies.
The United States saw similar trends in April, with producer prices jumping 1.4% in a single month — the biggest rise since March 2022. American petrol prices alone surged 15.6% that month.
Bank of England watching closely
These business surveys matter because the Bank of England uses them alongside official inflation data when setting interest rates. Consumer price inflation is already running above the Bank’s 2% target in early 2026.
The survey results aren’t directly comparable to official inflation measures like the Consumer Price Index. But they provide timely insights into where prices might be heading before official statistics catch up.
Different sectors face varying pressures. Energy-intensive industries, manufacturers, hotels, restaurants and transport companies typically report higher cost increases than some service sectors.
Government energy support schemes introduced during the 2022-2023 crisis have largely been scaled back, leaving businesses more exposed to wholesale price swings.
Source: @ONS
Key Takeaways
- Business input costs hit their highest level since December 2022, with 40% of firms reporting price rises
- One in six companies raised their own prices in April — the most since April 2023
- Global energy and shipping costs are the main drivers behind renewed inflationary pressure
What This Means for Kent Residents
Kent households should brace for higher prices in shops, restaurants and for local services as businesses struggle with mounting costs. Key local sectors including logistics around Dover, agriculture, tourism and hospitality are chiefly exposed to fuel and energy price swings that could force price rises. Residents can prepare by budgeting for potential increases in everyday goods and services, while local businesses should contact the Kent & Medway Growth Hub for advice on managing cost pressures through efficiency measures and pricing strategies.