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BOE Survey: UK business inflation expectations rise in August

The Bank of England’s (BOE) Decision Maker Panel survey of chief financial officers showed on Thursday, British businesses' expectations for consumer price inflation rose in August.

Key takeaways

Expected year-ahead annual output price inflation was 6.5% in the three months to August, up from 6.3% the previous month.

Over the next 12 months, firms expected unit cost growth to be 8.3%.

DMP members expected CPI inflation to be 8.4% one-year ahead, up from 7.3%.

Expected year-ahead employment growth was 2.2% in the three months to August, down from 2.4%.

Overall business uncertainty edged up in August.

Uncertainty relating specifically to the conflict in Ukraine and to Brexit also increased.

Market reaction

GBP/USD remains vulnerable near 1.1600 amid risk-aversion, US dollar strength and UK political woes. The spot is down 0.25% on the day.

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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