UK Firms Expect to Keep Raising Prices Even as Inflation Falls

Photo credit: Bloomberg

UK companies became more optimistic about inflation in June, even as they plan to raise their own prices by 4% in the coming year — double the Bank of England's CPI target.

The BOE's Decision Maker Panel showed firms see consumer prices rising 3.3% in the next 12 months, down from an expectation of 3.7% in May.

The survey was carried out between June 5 and June 19, a period spanning the announcement that the US and Iran had reached a deal to reopen the Strait of Hormuz. The news triggered a plunge in oil prices and raised hopes that inflation will peak at a lower level than previously thought.

By Andrew Atkinson

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