UK manufacturers’ costs and selling prices rose sharply in the quarter to July, CBI survey finds

The Confederation of British Industry’s Industrial Trends Survey shows average costs climbed rapidly in the three months to July, with firms raising both domestic and export prices — and expecting costs to stay elevated into October.

Average costs for UK businesses rose at a rapid pace in the quarter to July, the Confederation of British Industry has reported, with firms simultaneously pushing up both domestic and export selling prices. The figures show that cost pressures were at least partly passed on to customers, suggesting the squeeze on margins did not fall entirely on businesses themselves. Cost growth looks set to slow in the three months to October, but the CBI is clear that costs will remain elevated — not return to where they were before inflation took hold.

That picture sits alongside ONS data showing UK Consumer Prices Index inflation reaching 3.8 per cent in July, up from 3.6 per cent in June — the highest rate since January 2024. Airfares drove part of that rise, jumping 30.2 per cent month-on-month in July, the largest single-month increase since 2001. Petrol prices rose by around 2 pence per litre between June and July, diesel by around 2.9 pence per litre, and food and beverage inflation climbed to 4.9 per cent annually, up from 4.5 per cent in June.

For Kent, direct. The county’s manufacturers, logistics firms, food producers and hospitality businesses all face input costs — energy, fuel, materials, labour — that mirror what CBI members are reporting nationally. And with Kent’s ports and freight corridors handling significant export volumes, higher export selling prices could affect how competitive local firms are in EU and global markets.

It’s a slow squeeze rather than a sudden shock. Costs aren’t falling; they’re just rising a little less fast.

The Bank of England and central government are expected to factor CBI survey data of this kind into monetary policy and fiscal decisions, alongside ONS statistics. Whether the anticipated slowdown in cost growth through to October translates into any meaningful relief for Kent households — already facing higher travel, food and housing-related costs — will depend on how quickly, and how fully, those easing pressures filter through to the prices businesses actually charge.