Most firms are not passing on total cost increase to customers


Most companies are not passing on the full impact of higher costs to their customers, according to the latest industrial monitor compiled by national statistics office CBS and various trade and industry bodies.

In total, 75% of firms in the survey say they are bearing some of the cost themselves. Almost three in 10 say this is because they fear their competitive position will be damaged, 20% say they are concerned sales will go down and 23% cite contract issues as reasons not to put prices up fully.

And around one in four firms say they have not been hit by higher costs or have been able to pass increases on to customers completely.

Higher prices have not worsened companies debt positions either. However, 5% say their debt position is problematic, a factor which is highest in the hospitality industry.

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