Supply chain disruption could force Christmas prices to rise according to a new report. 

Four in five mid-sized firms have said they expect supply chain issues and Covid-19 disruption to affect prices this month, according to a survey conducted by accountancy firm BDO. 

A further third confirmed they were planning to increase their prices, the report stated.

With businesses being battered by rising utility and fuel costs over the season, bosses say they now expect it to impact consumers in upcoming periods. 

Ilkley Gazette: Firms have warned of price rises. (PA)Firms have warned of price rises. (PA)

Thirty-two percent of mid-sized retail and wholesale firms, said they will increase prices. 

Another 32% said they plan to cut the number of products or services they offer as a result of inflation. 

Manufacturing businesses are taking the biggest hit with 39% planning to decrease the number of products on offer and a similar amount going to increase costs.

BDO partner, Ed Dwan said: "Following a year of disruption, many businesses will have been hoping for a strong finish to 2021 and a fresh start for 2022.

"The harsh reality is that continued supply chain issues, rising energy prices, and increasing costs mean that many are taking further drastic measures to stay afloat."

Bosses have warned that Covid-19 restrictions could place more strain on the availability of products and services.