Latest updates: Inflation fears in the UK rocket as supply and staff shortages hamper recovery

Inflation concerns have reached record highs among UK businesses, with more than half of respondents citing rising prices as a “growing concern”, one of the largest independent surveys of emotions. It is a leading indicator of economic growth.

“The continued weakness of some indicators highlights concerns about the strength of the recovery,” a quarterly economic survey from the British Chamber of Commerce said on Wednesday.

More than half (52%) of the more than 5,700 companies surveyed cited inflation as a “heightened” concern in the third quarter. This figure was up from 40% in the previous three months, but inflation expectations reached a record high of 62%. Manufacturers predict that prices will increase over the next three months.

According to a BCC survey, 47% of companies reported an increase in their domestic sales, up from 44% in the second quarter.

In the manufacturing industry, 60% of companies expect prices to rise. This is the highest level in the history of the Quarterly Economic Survey, which began in 1989.

Suren Thiru, Head of Economics at BCC, said:

“The UK economy is on track for modest growth, but a period of stagflation may be inevitable,” he added.