SME inflation twice official figure

The average annual rate of inflation for small businesses is almost double the official figure, according to research from Warwick Business School.

The study found inflation for small businesses stood at an average of 9.9%, almost twice the 4.7% reported in the Consumer Prices Index by the Office for National Statistics.

Rising fuel, energy, raw material and labour costs were the main culprits, the research said, with the manufacturing sector particularly badly hit.

There were also strong regional variances, with companies in the north experiencing an average of 11% while those in Scotland had the lowest rate, at 8.5%.

"The Business Inflation Guide fills a gap in our understanding of the pressures on small firms and gives us a robust and quantifiable insight into the costs faced by small businesses in an increasingly difficult economic climate," said Stephen Roper, professor of enterprise at Warwick Business School.

The study was done in conjunction with More Th>n Business.