Britain’s economy ‘resurgent’ as pandemic recovery surges ahead of EU | City & Business | Finance

“With February’s rate of cost inflation the second-highest on record, wage rises, energy costs and continuing raw materials shortages took a sizeable chunk out of business profits.”

Inflation has continued to prove a major problem for businesses with increasing signs of companies passing on price rises to consumers, as confirmed by a number of major firms in recent weeks including Unilever and Nestle.

According to today’s figures costs for businesses were found to be rising at their second-highest rate since the index began in 1998.

Chris Williamson, Chief Business Economist at IHS Markit, warned that while the figures indicated a “resurgent economy” the growing cost pressures made the chance of a third interest rate hike from the Bank of England in March “look increasingly inevitable.”

Thomas Pugh, an economist at consultancy RSM UK, commented: “The Monetary Policy Committee (MPC) has made it clear that it is more focused on the threat from inflation than the risks to economic growth.