UK businesses forecast sizeable drop in inflationary pressures

Potential rate cuts on the horizon

Inflationary pressures on UK businesses have started to subside and are expected to continue falling throughout 2024, according to the Bank of England’s monthly Decision Maker Panel survey.

The survey, which polled 2,254 CFOs across small, medium and large UK businesses, found firms expected their output price inflation to fall in the next 12 months by 1.5 percentage points from the 4.4% reported for Q4 2023. Wage growth remained sticky though, with expected growth at 5.2% for the next year, while realised wage growth in the last quarter of 2023 was 6.9%. UK executives call on Bank of England to cut rates amid sinking confidence in economy - reports Uncertainty among UK businesses also fell marginally in December, with 51% of firms reporting a high or very high level ...