PIE: 74% of companies raised prices of products and services in 2022 vs. 44% in 2021

by   CIJ News iDesk III
2023-01-19   11:18

Nearly three-fourths of entrepreneurs (74%) declared last year that they raised prices of products and services, while a year earlier just over two-fifths of them (44%) indicated so, according to a survey by the Polish Economic Institute (PIE).

In 2022, as many as 74% of businesses declared that they had raised the prices of products and services, while a year earlier 44% indicated so. In addition, fewer companies did not change prices in 2022 (21% vs. 37% in 2021), and only 4% of companies lowered them (twice as many in 2021 - 8%), according to the PIE Economic Weekly.

PIE's 2022 survey shows that as the size of the company increases, the percentage of indications of price increases for products and services increases. Prices were raised most often by large companies, with 81% of indications, while micro companies showed the lowest percentage of price increases (72%). Prices were raised most often by industrial processing companies - 88% (54% in 2021). Among trading companies, 84% decided to raise prices in 2022, and about 75% each of TSL, construction and services companies. In services, just over 25% were not changing prices in 2022.

Increasing the prices of services and products offered, entrepreneurs explain primarily by the increase in manufacturing costs (raw materials, semi-finished products and components) and the increase in labor costs. A large and very large impact of these factors was indicated by 73% and 60% of the surveyed companies, respectively. In addition, entrepreneurs pointed to other factors significantly influencing the raising of prices of goods offered by their companies. As many as 41% of entrepreneurs considered that rising administrative costs (e.g., garbage collection, water consumption) contributed to the increase in prices of products and services. For 37% of respondents, the stimulus for raising prices was also price increases at competitors, and for 36% of companies, rising energy costs were the factor responsible for the price increase. Interestingly, among the surveyed companies, 17% indicated that they raised prices due to public acquiescence, the report reads.

PIE's December 2021 and 2022 surveys of a sample of 1,000 companies.

Source: PIE and ISBnews