Prices rising at the fastest pace for 25 years: Inflation stalks the UK economy

Prices are rising at the fastest pace in at least a quarter of a century as businesses pass on the costs of labour, materials, shipping and energy to consumers.

Firms in the services sector, which range from transport companies and hairdressers to pubs and restaurants, hiked their prices in September at the fastest rate since data began in 1996, according to the Purchasing Manufacturers’ Index (PMI) from IHS Markit.

Manufacturers are also putting up prices as inflation once again stalks the global economy.

British companies have been battling against a storm of cost pressures, as labour shortages in the aftermath of the pandemic and Brexit have combined with a scarcity of fuel and escalating prices of raw materials.