Good morning.
It looks like the cost of living crisis still has a long time to go, as a record number of UK companies are planning upcoming price increases.
Almost two-thirds of businesses expect to raise prices in the next three months, according to British chambers of commerce. This rises to 80% in the retail, construction and manufacturing sectors.
Respondents cited concerns about higher energy prices, wages, fuel and raw material costs, while the BCC warned that “red lights are starting to flash” on the economic scoreboard.
Meanwhile, a report by the Resolution Foundation found that Britain’s poorest families have been “brutally exposed” to the cost of living crisis after almost two decades of stagnant incomes.
Adjusted for inflation, the disposable income of a typical household grew by just 0.7% a year in the 15 years before the Covid pandemic, while the poorest fifth of the population was no better off at all.
5 things to start your day with
1) Boris Johnson urged to back bid for factory at heart of Britain’s food supply: Last-minute appeal for Boris Johnson to pave the way for takeover of fertilizer plant ahead of August shutdown
2) City banks defy Brussels to overtake French rivals: British banks made more profits than French rivals for the first time since 2015, despite efforts by EU officials to move more jobs out of London and to the continent after Brexit.
3) Tesla loses $440 million as Elon Musk’s bitcoin bet sours: Automaker’s $1.5 billion investment loses value amid crypto slump
4) The RAF’s flagship squadron has no drones: The RAF’s flagship drone testing squadron does not own any drones and has not carried out any internal drone trials in its two years of existence.
5) Roger Bootle: Public sector pensioners will be the winners of this inflationary disaster
What happened in one night
Asian markets were mixed and oil fell as traders worried about a possible recession caused by the central bank raising interest rates aimed at fighting rising inflation.
Hong Kong fell, while Shanghai, Seoul, Taipei and Jakarta also saw declines.
However, Tokyo, Sydney, Singapore, Taipei and Wellington rose.
It’s due today
Enterprise: No updates planned
Economy: Producer Price Index (EU)
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