# Consumers brace for higher prices as businesses pass on cost hikes
Published: 2022-04-22
Category: Business
Category URL: https://luxuryadviser.com/category/business/
Meta Title: UK Businesses Hit Hard by Rising Energy Costs in 2022
Meta Description: As inflation soars, UK businesses, especially in the accommodation and food service sectors, grapple with escalating energy costs. Many are passing these onto...
URL: https://luxuryadviser.com/consumers-brace-for-higher-prices-as-businesses-pass-on-cost-hikes/

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- In early April 2022, over a quarter (29%) of trading businesses said their production and/or suppliers had been affected by recent increases in energy prices.
- Accommodation and food service providers were most affected.
- More than a third (36%) said they were having to absorb costs as a result of general price increases; 29% were passing the price increases on to customers.
- Almost 28% of businesses said they had not been affected by price increases yet.
- Approximately 15% reported that they had to change suppliers or find alternative solutions to get the materials, goods or services they needed from within the UK in March 2022.
- Inflation remains the key concern for businesses.

ONS has released the latest Business Insights and Impact on the UK economy data: [Business insights and impact on the UK economy – Office for National Statistics (ons.gov.uk)](https://74n5c4m7.r.eu-west-1.awstrack.me/L0/https:%2F%2Fwww.ons.gov.uk%2Fbusinessindustryandtrade%2Fbusiness%2Fbusinessservices%2Fbulletins%2Fbusinessinsightsandimpactontheukeconomy%2F21april2022/1/010201804bb18d2d-973d35ef-3db4-47e6-a8e1-76b34c3231ed-000000/xTAopxskpkSMJ9SbRbm8PXIKJGI=267)

**Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown:**

“Consumers need to brace themselves for rising prices as businesses increasingly say they are having to pass on cost increases to customers. A toxic mix of rising inflation, soaring energy costs and supply chain issues are placing businesses under increased pressure.

Over a quarter of businesses report they have been affected by energy price rises while 15% said they had to change suppliers or find alternative solutions to get the goods and services they need to stay in business. It’s a situation that is likely to only get worse as inflation continues to soar and we brace for further energy price rises in the Autumn.

After a bruising lockdown this is the last thing these businesses need at a time when they want to tempt consumers to get spending. Accommodation and food service providers were most affected by increases in energy prices – these were businesses particularly badly affected by the pandemic and having to hike their prices at a time when people are already starting to make budget cuts will be the last thing they need.”


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