Prices on way up

Households are set to be hit after expected price rises by manufacturers reached an 18-month high.

The poll, by the Confederation of British Industry, found that 17% of companies are braced to increase prices over the next three months and 8% to cut them.

The balance between the two is the highest since February 2015.

The poll found that 21% of businesses said export orders were above normal, with 27% below, giving a minus 6% balance – the strongest for two years.

Samuel Tombs, of Pantheon Macroeconomics, predicted higher import prices would push inflation up to 2% later this year.