UK Businesses Prepare for Faster Price Hikes Amid Energy Cost Surge

UK businesses are bracing themselves for faster price increases due to rising energy costs, according to data from the Bank of England's Decision Maker Panel. The resurgence in oil and gas prices has driven up inflation expectations among firms, with a majority planning to pass on cost increases to consumers.

The survey found that companies expect to raise their own prices by 3.9% over the next year, which is the highest reading since June. This represents a 0.3 percentage point increase from the previous month's data.

Firms are likely to take a hit to their profit margins as they try to absorb the increased costs or pass them on to consumers. The Bank of England's Decision Maker Panel data provides insight into businesses' inflation expectations, which can influence monetary policy decisions.