"New data from the Bank of England shows firms now expect inflation to reach 3.5 per cent over the next 12 months, up from 3 per cent previously and marking the highest year-ahead forecast since late 2023."
"Brent crude has remained above $100 a barrel, reinforcing concerns that energy-driven inflation could prove more durable than previously thought."
"Companies now expect to increase their prices by an average of 3.7 per cent over the coming year, up from 3.4 per cent in February."
"Industry groups have already flagged the potential for grocery prices to rise by as much as 9 per cent by the end of the year, while household energy bills are expected to increase sharply when the next Ofgem price cap takes effect."
Inflation expectations among UK businesses have reached 3.5%, the highest in over two years, influenced by rising energy prices from the Middle East conflict. Firms anticipate fewer interest rate cuts, expecting only one in the next year. Brent crude prices remain above $100 a barrel, raising concerns about persistent inflation. Companies plan to increase prices by an average of 3.7%. Higher costs are expected to affect food, transport, and essential goods, with grocery prices potentially rising by 9%. Employment growth projections have also shifted to a slight contraction.
Read at Business Matters
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