BOE Survey Shows Firms Planning 4% Price Rises as Energy Risks Mount

U.K. businesses now expect to raise prices by 4% over the next year, according to a fresh Bank of England survey of 2,086 CFOs released June 5. The finding follows Governor Andrew Bailey’s June 2 attribution of the inflation overshoot to Persian Gulf events and MPC member Megan Greene’s hawkish warning that tightening may be needed before the June 18 decision. ING then flagged fragile LNG and power-interconnector flows as a July-meeting risk, arguing markets’ later-year rate-cut pricing may be premature. With GBP/USD still near 1.3463, the survey adds fresh upside pressure on sterling and borrowing costs.