UK factory costs rising at fastest pace since 1980, CBI says

Survey finds labour shortages driving intense and escalating cost and price pressures'

Cost pressures for Britain's factories are growing at their fastest pace since 1980 as companies struggle to find workers to meet growing demand, a leading business lobby group has said.

The CBI warned that higher manufactured goods prices were inevitable after its monthly healthcheck of industry showed labour shortages at their most acute in almost half a century.

Average costs growth accelerated at the fastest pace since April 1980.

Average domestic price growth in the quarter to January was similar to October, which was the highest figure since April 1980 and is anticipated to accelerate over the next three months.

Average export prices in the quarter to January grew at their quickest pace since April 1980 and price growth is again expected to pick up over the coming quarter.

The share of firms citing skilled labour as a factor likely to limit output next quarter rose to its highest since October 1973.