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ARTICLE · 05 MAY 2022

Prepare For Prolonged High Inflation

Vendigital
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Rising energy and commodity prices are forcing many UK manufacturers to increase prices, but there is a limit to how far they can go without the risk of losing out to cheaper or more agile competitors.

United KingdomGovernment, Public Sector
Vendigital Ltd.
Vendigital Ltd.

Paul Cooper is a Director and Industrial Manufacturing sector specialist at Vendigital. He recently shared his insights with The Engineer.

Rising energy and commodity prices are forcing many UK manufacturers to increase prices, but there is a limit to how far they can go without the risk of losing out to cheaper or more agile competitors. With inflationary pressures increasing, they need to consider alternative strategies.

Since Russia's invasion of Ukraine and its impact on global energy and commodity prices, economists have been predicting a prolonged period of high inflation, which is threatening to undermine the recovery getting underway in many developed nations. In the UK, the Bank of England has indicated that inflation could hit double digits later this year, and analyst opinion is currently split on whether it will fall next year.

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