BICS weighted Scotland estimates: data to wave 84

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 84 businesses were asked about prices in the month of May 2023. Prior to Wave 55, these questions asked how prices compare to normal price fluctuations.

Figure 2: In Wave 84, 37.3% of businesses reported that the prices of materials, goods or services bought in May 2023 had increased from the previous calendar month. Over the same period, 19.8% 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, 69, 71, 74, 76, 78, 80, 82 and 84.

Of currently trading businesses, 37.3% reported an increase in the prices of materials, goods or services bought in May 2023 compared with April 2023, a slightly lower share than the previous month (41.5%).

In the latest period, the industry sector with the highest proportion of businesses reporting increases in the prices of materials, goods and services bought was Accommodation & Food Services (63.9%).

Of currently trading businesses, 19.8% reported an increase in the prices of materials, goods or services sold in May 2023 compared with April 2023; down from 24.8% when comparing April 2023 with March 2023.

In the latest period, the industry sector with the highest proportion of businesses reporting increases in the prices of materials, goods and services sold was Accommodation & Food Services (35.3%).

In Wave 84, businesses not permanently stopped trading were asked in which ways their business had been affected by any price rises they had experienced.

Figure 3: An estimated 80.0% of businesses had been affected by general price increases in some way; the top three impacts reported by businesses were having to absorb costs (61.5%), passing on price increases to customers (34.0%) and having to change suppliers (18.9%).

Source: Office for National Statistics – BICS – Weighted Scotland Estimates – Wave 84

Businesses were also asked if they had been affected by recent increases in energy prices. In the period 29 May to 11 June 2023, over half (54.7%) 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 84, businesses were asked what their expectations were for the prices of goods or services sold in July 2023, and the factors causing the businesses to consider raising prices.

An estimated 17.3% of businesses were expecting to increase prices in July 2023, lower than the previous month (21.2%). The top three factors reported by businesses for these expected price increases were labour costs (35.0%), energy prices (34.5%) and raw material prices (23.7%).