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52% of Irish SME businesses have raised prices to fight inflation

Written by Robert McHugh, on 22nd Sep 2023. Posted in Ireland

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Fifty two percent of Irish SME businesses raised their prices in the second quarter.

This is according to the latest Linked Finance SME Confidence Index, based on research conducted by Behaviours & Attitudes.

Inflation Squeeze

The survey found 54% of businesses have taken measures beyond pricing to mitigate the effects of inflation. 

Linked Finance said initial steps taken by businesses to tackle the inflation squeeze have focused on price increases, but as Ireland's rate of inflation slows down, businesses are looking to boost earnings.

Measures

The research shows that 34% of businesses have cut their operational costs, 19% have pursued product diversification, and 12% have introduced discounts and promotions to navigate the challenging economic environment.

The Index shows that 83% of businesses expect to perform better or in line with projected expectations compared with the same period last year. 

Business Optimism

Overall, the 2023 SME Index for the second quarter of 2023 saw a notable levelling off in business optimism. 

The latest Index showed Business Optimism at a level of 61.90 (out of 100), only slightly up from 61.62 a year ago, despite a large drop in inflation during the same period last year. 

'External Factors'

“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," said Niall O’Grady, CEO of Linked Finance.

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

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