The Bank of England has issued new data from its Decision Makers’ Panel, a monthly survey of thousands of business leaders, representing the UK private sector.
This data shows that price increases enacted by businesses have become more significant as 2021 has progressed.
Average annual price rises reported over July – September 2021 were +3.9%, compared with +1.5% in the same period the year before.
Representatives also appear to be becoming more pessimistic about the future – respondents expected average price increases in the year ahead to be +3.5%, compared with +1.8% a year ago.
Note that this data is based on businesses leaders commenting on their own businesses – the aggregate view may be taken as indicative for a large part of the economy.
HM Treasury also collects whole-economy inflation forecasts from independent experts, drawn from the financial sector.
These forecasts show a similar pattern of increasing inflation expectations over the course of 2021, although these experts seem rather more dove-ish about prospects for 2022.
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