BICS weighted Scotland estimates: data to wave 108

Prices

The BICS asks businesses that have not permanently stopped trading (i.e. ‘Currently Trading’ or ‘Paused Trading’) about how the prices of materials, goods and services bought and sold compare with the previous calendar month. Note that in Wave 108 businesses were asked about prices in the month of April 2024. Prior to Wave 55, these questions asked how prices compare to normal price fluctuations.

Figure 3: In Wave 108, 35.0% of businesses reported that the prices of materials, goods or services bought in April 2024 had increased from the previous calendar month. Over the same period, 16.5% of businesses reported that they had increased the price of goods or services sold.

Estimated share of businesses experiencing increased prices. Businesses currently trading - with 10+ employees and a presence in Scotland. Applicable waves 18 to 108.

Source: BICS Weighted Scotland Estimates - Wave 108 from the Scottish Government. For Figure 3 data see tables ‘PricesBoughtChange’ and ‘PricesSoldChange’.

There has been a marked rise in the shares of businesses reporting an increase in both buying prices and selling prices in April 2024 compared to March 2024. This is connected to the new tax year, with many businesses commenting that they have been unable to absorb the cost of the National Living Wage increase.

In the latest period, the industry sectors with the highest proportion of businesses reporting increases in the prices of materials, goods and services bought were Accommodation & Food Services (46.8%) and Administrative and support services (45.9%).

In Wave 108, businesses were asked what their expectations were for the prices of goods or services sold in June 2024, and the factors causing the businesses to consider raising prices.

An estimated 14.6% of businesses were expecting to increase prices in June 2024. The top three factors reported by businesses for expected price increases were labour costs (33.1%), energy prices (18.0%) and raw material prices (17.3%).