UK business leaders forecast inflation to fall over next 12 months

High levels of uncertainty remain

The Bank of England’s Decision Maker Panel survey has revealed UK businesses expect output price inflation to drop over the next year.

The survey, which polled 2,230 CFOs from small, medium and large UK businesses in August, showed that realised output price inflation remained at 7.4% in the three months to August 2023. Bank of England's Andrew Bailey: 'We are much nearer the top' of the hiking cycle The data for August alone was also 7.4%, 0.4 percentage points lower than in July. Looking ahead, business leaders had a generally more positive outlook, as they forecast year-ahead output price inflation to be 4.9% in the three moths to August, down from 5.2% in the three months to July. This was in line with expe...