London firms sweat over looming inflation spike
Accelerating inflation is dealing a severe blow to London businesses just as they are pushing to repair the damage inflicted on them by the Covid-19 crisis, reveals a fresh survey published today.
Russia’s invasion of Ukraine has swelled businesses in the capital’s energy bills by sending oil and gas prices soaring.
Over six in 10 London firms are having to absorb higher energy costs, stoking concerns over their long-term profitability, according to the London Chamber of Commerce and Industry (LCCI).
Some 62 per cent of London businesses are more worried about inflation, the highest on record.
The “fragile recovery of London businesses from the pandemic is being jeopardised by soaring costs and record high concerns amongst business leaders over rising inflation,” Richard Burge, chief executive of the LCCI.
Virus curbs delivered a sharp blow to London businesses’ bottom lines due to their heavy reliance on workers coming into the office for income.