UK Firms Tame Inflation Expectations as Energy Costs Bite

According to the Bank of England's latest Decision Maker Panel survey, UK firms expect their selling prices to rise by 3.7% over the next year, a slight decrease from their previous estimate.

This is despite higher energy costs continuing to put pressure on profit margins, with 57% of firms expecting to increase prices due to these increased costs, down from 64% in April and 68% in August.

The survey also found that businesses expect consumer price inflation (CPI) to be 3.1% one year ahead, unchanged from the previous period, while three-year-ahead CPI inflation expectations remained at 2.8%.