Over half of small firms have put up prices due to inflation

OVER half of small businesses in the country have increased prices to deal with the impact of inflation.

According to a survey by Linked Finance of more than 350 Irish business owners and managers, around 52 per cent of Irish small and medium enterprises (SMEs) have introduced price increases.

Three-quarters of retail and wholesale businesses have increased prices in response to inflationary pressures.

These businesses have recorded “significant” gains in their business activity, the survey found.

The research also found that price hikes were continuing despite the slowdown in the rate of inflation.

The Central Statistics Office’s Consumer Price Index was 4.6 per cent last month, down from 4.8 per cent in June and well below the 9.6 per cent recorded in July 2022.

The survey also found that just over a third of businesses have opted to cut operational costs, while 19 per cent have looked into diversifying their product offering.

A further 12 per cent have introduced discounts and promotions to boost sales.

“While we are seeing increased business activity in segments of the economy and business continue to pass higher prices onto consumers, it hasn’t fully translated into higher profits and earnings,” chief executive Niall O’Grady said.

“This highlight the pressure that businesses are under due to external factors and influences.”

The research also found that 83 per cent of businesses expect to perform better or in line with projected expectations in the final three months of the year.

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