More than 40% of UK transport and storage firms are planning to increase prices in May, according to the latest data from the Office for National Statistics (ONS), as rising costs continue to ripple through supply chains.
The ONS Business Insights survey shows 41.1% of transport and storage businesses intend to raise prices this month, alongside 40.5% of retailers and 35.2% of manufacturers.
The figures mark a sharp increase on April, when just 18.6% of transport and storage firms expected to increase prices - a jump of 22.5 percentage points month on month. Retailers and manufacturers also recorded significant rises in pricing intentions over the same period.
The data highlights the growing cost pressures facing operators, with over half of transport and storage firms (50.6%) reporting increases in the price of goods and services purchased in March compared with February. Similar levels were reported by retailers (50.9%) and manufacturers (48.5%).
At the same time, demand appears to be weakening. In March, 26% of transport and storage businesses reported falling turnover, alongside 27.2% of retailers and 25% of manufacturers.
Supply chain disruption is also intensifying. Among firms experiencing global disruption, 46% cited conflict in the Middle East as a key factor — a rise of 34 percentage points compared with February, according to the ONS.
Economic uncertainty is now affecting a growing share of businesses, with 27.6% of transport and storage firms reporting an impact, rising to 43.9% among retailers and 37.4% for manufacturers. The ONS said this represents the highest level recorded since it began tracking the measure in April 2022.
Energy costs and transport disruption are emerging as major drivers behind planned price increases. Around 34.1% of transport and storage firms cited energy prices as a factor, while 41.6% pointed to rising transport or haulage costs linked to disruption in global shipping routes.
Commenting on the figures, David Jinks, Parcelhero head of consumer research, said the data “spells bad news for both British industry and for consumers”, pointing to the combined impact of rising costs, falling demand and ongoing supply chain disruption.
He added: “‘Unfortunately, the economic impact of the conflict does not look likely to lessen anytime soon. The fragile ceasefire between the US and Iran is currently under increased threat over the Strait of Hormuz blockade, while international supply chains will face continued increased costs and disruption for months, even if the truce holds.”
