Experts predict inflation and commodity prices to hit UK manufacturers

Experts in the UK are predicting that inflation and commodity prices will continue to have an ‘acute’ impact on the UK manufacturing sector, despite benefits from output growth in the coming quarter.

According to new market data from CBI, price pressures "remain a concern", with 31 per cent of manufacturers predicting they will raise output prices over the coming quarter, and 5 per cent expecting to lower prices.

Ian McCafferty, CBI chief economic adviser, warned, "Inflationary pressures remain acute. High commodity prices and import costs mean firms still expect to raise factory gate prices markedly over the next three months."

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