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UK Inflation Expectations Are Heating Up, BOE Survey Shows

  • Firms expect to increase prices by 6.3% over the next year
  • Findings may add to pressure for bigger rate hikes in future
Updated on

Expectations for inflation, output prices and wage increases among UK businesses are all jumping higher, according to a Bank of England survey that may convince policy makers to push for bigger interest-rate hikes in the coming months.

Firms questioned in June expected to increase prices by 6.3% and wages by 5.1% over the next year, the BOE’s Decision Maker Panel of chief financial officers showed Thursday. Expectations for inflation in a year’s time stood at 7.4%, while the three-year figure was 4%, still double the target.