UK Firms Expect 3.7% Price Rise Over Next Year Amid Energy Cost Pressure

UK businesses expect their prices to rise by 3.7% over the next year, according to the Bank of England's latest survey.

This marks a slight decrease from their previous estimate and is despite higher energy costs putting pressure on profit margins.

The Decision Maker Panel survey, which polled 1,993 UK businesses between September 4 and 18, found that 57% of firms expected to increase prices due to higher energy costs, down seven percentage points from April.

However, the same number of firms also expect the energy shock to reduce their profit margins by two percentage points more than in April.