UK businesses forecast sizeable drop in inflationary pressures

Potential rate cuts on the horizon

Cristian Angeloni
clock • 1 min read

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 ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Economics

Consumer confidence dips for first time in three months

Consumer confidence dips for first time in three months

Higher than a year ago

Cristian Angeloni
clock 23 February 2024 • 2 min read
Fiscal rules 'close to meaningless' unless sensitivity to OBR forecasts is reduced

Fiscal rules 'close to meaningless' unless sensitivity to OBR forecasts is reduced

Trio of economists tell Treasury Committee

Cristian Angeloni
clock 22 February 2024 • 5 min read
Fed officials 'highly attentive' to inflation despite recent progress

Fed officials 'highly attentive' to inflation despite recent progress

Outlook is 'uncertain'

clock 22 February 2024 • 1 min read
Trustpilot