Businesses surveyed by the Bank of England anticipate higher price increases over the next year, signaling persistent inflation pressures.
UK businesses expect their own prices to rise 4.1% over the next year, up 0.1 percentage point from the previous survey period, according to the Bank of England’s Decision Maker Panel. The increase marks a reversal after a slight decline in earlier reports, suggesting renewed inflationary pressures in the economy.
The latest reading follows a prior three-month average of 4.0%, which had eased from 4.2% in the first quarter. Analysts had anticipated a modest decline, but firms’ expectations instead ticked higher, reflecting concerns over wage growth and input costs.
The data may influence the BoE’s monetary policy outlook, as persistent inflation expectations could reinforce calls for tighter financial conditions.