UK Inflation Concerns Return as Red Sea Attacks Lift Prices
- PMI and CBI reports both point to supply chain price pressures
- Pound jumps on worry about delay for interest rate cuts
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British companies reported a jump in the prices they pay due to attacks on shipping in the Red Sea upsetting supply chains, a shift that may boost inflation and delay interest-rate reductions.
S&P Global’s Composite Purchasing Managers’ Index showed the sharpest jump in costs in five months in January with delivery times lengthening for the first time in 12 months. A separate survey from the Confederation of British Industry said average costs for manufacturers accelerated in the quarter to January, with further price rises expected in the coming months.