BICS weighted Scotland estimates: data to wave 69

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 69 businesses were asked about prices in the month of October 2022. Prior to Wave 55, these questions asked how prices compare to normal price fluctuations.

Figure 6: In Wave 69, 42.6% of businesses reported that the prices of materials, goods or services bought in October 2022 had increased from the previous calendar month. In contrast, only 19.9% of businesses reported that they had increased the price of goods or services sold.

Source: Office for National Statistics – BICS – Weighted Scotland Estimates – Wave 18 to 32, 34, 36, 38, 40, 42, 44, 46 ,48, 50, 52, 55, 57, 59, 60, 63, 65, 67 and 69

Of currently trading businesses, 42.6% reported an increase in the prices of materials, goods or services bought in October 2022 compared with September 2022, down from 49.8% reported for the previous month. For prices sold, there was a slight increase over the same period – 19.9% reported an increase in the prices of materials, goods or services sold in October 2022 compared with September 2022, up from 19.2% reported for the previous month. 

In the latest period, the industry sectors with the highest proportion of businesses reporting increases in prices of materials, goods and services bought were Accommodation & Food Services (66.3%) and Wholesale, Retail & Repair of Vehicles (55.6%).

In the latest period, the industry sector with the highest proportion of businesses reporting an increase in the price of materials, goods and services sold was Wholesale, Retail & Repair of Vehicles (40.9%).

In Wave 69, businesses not permanently stopped trading were asked in which ways their business had been affected by any price rises they had experienced.

Figure 7: Almost three quarters of businesses not permanently stopped trading reported that they had been affected by general price increases in some way; the top three impacts reported by businesses were having to absorb costs (57.3%), passing on price increases to customers (34.2%) and having to change suppliers (16.6%).

Source: Office for National Statistics – BICS – Weighted Scotland Estimates – Wave 69

Businesses were also asked if they had been affected by recent increases in energy prices. In the period 31 October to 13 November 2022, almost half (49.1%) of applicable businesses reported that they had been affected by the recent increase in energy prices in some way (suppliers and/or production were affected).

In Wave 69, businesses were asked what their expectations were for the prices of goods or services sold in December 2022, and the factors causing the businesses to consider raising prices.

An estimated 23.3% of businesses not permanently stopped trading reported that they were expecting to increase prices in December 2022. The top three factors reported by businesses for these expected price increases were energy prices (42.0%), raw material prices (30.9%), and labour costs (29.1%).