The cost of war: over 40% of retailers and transport & storage firms plan May price increases

May 6, 2026 - PRLog -- The latest Office for National Statistics (ONS) Business Insights survey reveals over 40% of retailers and transport & storage sector firms plan to increase their prices this month.

Compared to April, many more retailers, manufacturers and transport & storage sector companies plan price increases this month. The shock figures reflect the equally sharp rises in costs UK businesses have faced since the start of the Iran conflict at the end of February, says the international delivery expert Parcelhero.

Parcelhero's Head of Consumer Research, David Jinks M.I.L.T., says: 'The results of the latest ONS Business Insights survey spell bad news for both British industry and for consumers. 41.1% of transport & storage sector companies say they plan to increase their prices this month, together with 40.5% of retailers and 35.2% of manufacturers.

'To put these price increases into perspective, only 18.6% of transport & storage companies planned price increases for April, together with 25% of retailers and 21.5% of manufacturers. That's a 22.5 percentage point increase in the number of transport & storage firms planning increases over last month, a 15.5 percentage point increase in the number of retailers planning a rise and a 13.7 percentage point increase in the number of manufacturers planning to up their prices.

'The planned price rises for this month are not surprising when we look at the increase in the cost of services and goods that companies are now facing. When comparing March to February, 50.6% of transport & storage firms reported an increase in the price of goods and services they bought in March, as did 50.9% of retailers and 48.5% of manufacturers.

'There is no mystery over the source of escalating prices and falling demand. Of those companies that experienced global supply chain disruption in March, 49.9% of retailers and 48.5% of manufacturers cited conflict in the Middle East. Across all business sectors, 46% cited conflict in the Middle East as a reason for experiencing global supply chain disruption in March – a 34 percentage point rise from February, according to the ONS.

'Unfortunately, the economic impact of the conflict does not look likely to lessen anytime soon. The fragile ceasefire between the US and Iran is currently under increased threat over the Strait of Hormuz blockade, while international supply chains will face continued increased costs and disruption for months, even if the truce holds. For real-time information on costs and services, see https://www.parcelhero.com/en-gb/international-courier-services