December 2, 2022
1 min read

UK firms expect to raise prices 6% in 12 months

Price-increase expectations eased only slightly from 6.2% in October. The average for the three months through November was 6.2%, down from 6.4% the previous month…reports Asian Lite News

Inflation pressures in the UK economy showed only limited signs of abating in November, with companies expecting to raise prices by 5.7% in the coming 12 months.

Chief financial officers surveyed for the Bank of England also said they expect consumer prices to be growing at an annual rate of 7.2% a year from now and 3.9% in three years, almost double the 2% target.

The Decision Maker Panel data published Thursday point to further BOE rate increases in the coming months as the central bank battles to prevent the highest inflation in four decades from becoming entrenched. The current inflation rate is 11.1%, reported Bloomberg.

As series of policy makers have pointed to the risk in recent days. On Wednesday, BOE Chief Economist Huw Pill cited corporate pricing power along with the strength of wage growth as reasons for vigilance.

Price-increase expectations eased only slightly from 6.2% in October. The average for the three months through November was 6.2%, down from 6.4% the previous month.

The BOE has raised interest rates eight times over the past year to 3% in an effort to avert a wage-price spiral. Money markets expect the cost of the borrowing to hit 4.7% by the summer of 2023, close to levels prevailing before the 2008 financial crisis.

A business confidence survey by Lloyds Bank Plc earlier this week said that 60% of UK companies are targeting higher prices, with manufacturing and importing firms most likely raise the cost of their products.

ALSO READ-100 UK firms to move to permanent 4-day working week

Previous Story

Racism must be confronted, says Sunak

Next Story

‘Supporting India’s G20 presidency is a key priority’

Latest from -Top News

Pakistan reverses support for Trump’s Gaza peace plan

Pakistan retracts support for Trump’s Gaza peace plan, citing differences with Muslim nations’ draft; move reflects domestic sensitivities and regional alignment amid ongoing Middle East conflict diplomacy. In a surprising shift, Pakistan’s

Hamas agrees to release all hostages

Hamas agrees to release all Israeli hostages under Trump’s 20-point Gaza peace plan, backed by global powers and the UN, paving the way for regional stability. Hamas has formally agreed to release

Qatar now under US shield

Trump offers Qatar an unprecedented security guarantee, pledging US military protection amid Israeli strike and Gaza peace negotiations, reinforcing Qatar’s role in regional diplomacy. In an extraordinary move, the United States has

UAE condemns Manchester attack

UAE condemns Manchester synagogue attack; UK deploys extra police, PM Starmer vows protection for Jewish communities while emergency services respond to a shocking Yom Kippur tragedy. The United Arab Emirates has strongly
Go toTop

Don't Miss

Indian ace singer Mohammad Vakil to perform in Manchester soon

Celebrated and award winning vocalist Mohammad Vakil will touch UK

Prince Harry to inherit millions on 40th birthday  

Sources suggest that Harry may have received a larger portion