It looks like the cost of living crisis is set to last much longer as a record number of UK firms are planning imminent price rises. 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, wage bills, fuel and raw material costs, while the BCC warned that “red lights are starting to flash” on its economic dashboard. Meanwhile, a report by the Resolution Foundation found that Britain’s poorest families had been left “brutally exposed” to the cost of living crisis after nearly two decades of income stagnation. 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 fared no better.

5 things to start your day

  1. Boris Johnson urged to back bid for plant at heart of Britain’s food supply: Last-minute plea for Boris Johnson to smooth track takeover of fertilizer plant before August closure
  2. City banks defy Brussels to beat French rivals: British banks posted more profits than French ones for the first time since 2015, despite efforts by EU officials to shift more jobs out of London and onto the continent after Brexit.
  3. Tesla loses $440m as Elon Musk’s Bitcoin bet tumbles: Automaker’s $1.5bn investment drops amid cryptocurrency plunge
  4. The RAF’s flagship drone squadron has no drones: The RAF’s flagship unmanned aircraft test squadron has no drones and has not carried out internal trials with the unmanned craft in its two years of existence.
  5. Roger Bootle: Public sector pensioners will be the winners from this inflation disaster

What happened in the night

Asian markets were mixed and oil fell as traders worried about a possible recession triggered by central bank rate hikes aimed at combating soaring inflation. Hong Kong fell while Shanghai, Seoul, Taipei and Jakarta were also down. However, Tokyo, Sydney, Singapore, Taipei and Wellington rose.

It’s coming today

Corporate: No updates planned Economics: Producer Price Index (EU)