Microsoft to hike UK prices as pound plunges

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Microsoft will increase prices for some enterprise services by up to 22% in Britain following the plunge in the pound, hitting thousands of companies and local government bodies who rely on its cloud and software products.

Microsoft said it would increase prices for its enterprise software by 13% and for its cloud services by 22% from January 1 next year, becoming the latest tech company to raise fees in the wake of the vote to leave the European Union.

The Brexit vote triggered the biggest one-day fall in sterling against the dollar and the pound is now down 18% against the U.S. currency, prompting computer makers such as Apple, Dell and others to increase prices in Britain.

The Bank of England has said it expects inflation to rise steadily over the next couple of years, overshooting its target of 2% and eroding household living standards.

The issue hit the headlines this month when Britain’s biggest supermarket, Tesco, clashed with supplier Unilever, briefly pulling popular goods such as the spread Marmite from its website.

Nestle, the Swiss maker of Kit Kat bars and Nescafe coffee, has said it is also looking at all options to deal with the steep decline in the British currency.

Long known for its Windows software, Microsoft has turned its focus to mobile and cloud computing in recent years, storing, managing and processing data for thousands of companies and public sector providers across a range of sectors.

It said it would not change the prices on consumer services and would also not change prices for existing orders under price protection deals during the term of that agreement.