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UK firms report biggest jump in price expectations in nearly two years, BoE survey shows
The survey showed firms expect 3.7% price growth over the next year as energy costs push inflation worries higher.
- On Thursday, a Bank of England survey revealed British firms expect to raise prices by 3.7% over the coming 12 months, up from 3.4% in February and marking the largest increase since April 2024.
- This shift follows a surge in energy prices tied to U.S.-Israeli attacks on Iran beginning February 28, which triggered firms to adjust their expectations as they respond to Middle East conflict escalation.
- Alongside rising price plans, firms expect to cut staffing levels by 0.3% and lower year-ahead wage growth to 3.5%, while 57% of businesses reported high or very high uncertainty facing their operations.
- Investors are now fully pricing in two quarter-point interest rate hikes this year, though Governor Andrew Bailey noted firms possess limited pricing power to pass on cost increases to customers.
- Britain's headline inflation held at 3.0% in February, but the Bank of England now forecasts the rate will rise towards 3.5% in the middle of the year amid energy-driven pressures.
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U.K. Businesses Anticipated Slight Pickup in Price Rises, BOE Survey Finds
By Paul Hannon U.K. businesses questioned in March expected to raise their prices at a slightly faster rate than they did prior to the conflict in the Middle East, while wage increases were seen... -April 02, 2026 at 05:09 am EDT MarketScreener
UK firms report biggest jump in price expectations in nearly two years, BoE survey shows
British companies expect to raise prices more quickly in the coming 12 months as they respond to a surge in energy prices due to the Iran war, cut jobs and raise pay by less than before, a Bank of England survey showed on Thursday.
·United Kingdom
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Coverage Details
Total News Sources5
Leaning Left1Leaning Right0Center4Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
L 20%
C 80%
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