economy
UK firms expect to raise prices more quickly as Iran war pushes up costs
Bank of England survey in March shows chief financial officers foresee 3.7% increase over coming year
TL;DR
- UK companies expect to raise prices more rapidly due to rising costs from the Middle East conflict.
- A Bank of England survey shows chief financial officers anticipate a 3.7% price increase over the coming year.
- The closure of the Strait of Hormuz has significantly driven up oil and gas prices.
- The chancellor has met retail executives to discuss supply shortages and price increases.
- Weak consumer demand may prevent companies from passing on cost increases, according to the Bank of England governor.
- Some analysts believe an economic slowdown is a greater concern than inflation, suggesting interest rates will remain unchanged.