UK firms reported a slight uptick in inflation expectations in September, according to the BoE’s Decision Maker Panel survey. Year-ahead CPI expectations rose by 0.1 percentage point to 3.4%, while three-year expectations were unchanged at 2.9%.
Wage growth expectations held steady at 3.6% on a three-month basis, though the single-month figure rose by 0.3 percentage points to 3.8%.
The survey highlighted ongoing concerns around the business outlook. Some 58% of firms judged overall uncertainty as high or very high, up slightly from 57% in August. That said, uncertainty surrounding year-ahead sales dipped marginally to 4.3%, while price uncertainty was unchanged at 1.7%, both far below the levels seen during past peaks.
