Business · Economy · 1 hr ago
UK business inflation pressures reach highest level since June 2023
UK businesses faced their strongest inflation pressures in more than three years in September, according to BDO’s index.
The index rose to 103.65, from 102.18 in August, its highest reading since June 2023.
Rising energy, fuel and raw material costs contributed to the increase.
At the same time, output fell in manufacturing and services as domestic demand softened.
BDO said higher costs and weaker demand were putting pressure on businesses ahead of the Autumn Budget.
Firms are also reporting squeezed profit margins and low hiring intentions.
The figures point to added strain on UK businesses as they seek more certainty from the government’s budget.
UK businesses faced their sharpest inflation pressures since June 2023, according to a BDO index.
The index rose to 103.65 in September from 102.18 in August.
BDO attributed the pressure to rising energy, fuel and raw material costs.
The report said output fell across manufacturing and services as domestic demand softened.
BDO warned that elevated costs and weakening demand were putting renewed pressure on firms ahead of the Autumn Budget.
- Who
- UK businesses, according to a report by accountancy and advisory firm BDO.
- What
- BDO’s inflation index rose to its highest level since June 2023. Rising costs and weakening demand were putting pressure on firms.
- When
- The index reached 103.65 in September, up from 102.18 in August. The report was published on 12 October 2026.
- Where
- The United Kingdom.
- Why
- Rising energy, fuel and raw material costs drove the pressure, while domestic demand softened.
This story does not have two clearly opposing sides.
Businesses head into this Budget with one clear message: no surprises. Cost pressures continue to squeeze margins, hiring intentions are low and growth is starting to plateau. Firms are not looking for grand interventions, but they do need certainty. Right now, concerns about further downside risks outweigh expectations of positive change.
BDO’s inflation index stood at 102.18.
BDO’s inflation index rose to 103.65, its highest reading since June 2023.
- BDO inflation index, August
- 102.18
- BDO inflation index, September
- 103.65
- Highest reading since
- June 2023
- Costs driving inflation pressures
- Energy, fuel and raw materials
- Affected sectors
- UK manufacturing and services
Sources
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