{
  "id": 11412775,
  "title": "Price pressures hit firms amid uncertain outlook and fears of interest rate hikes",
  "url": "https://urgent.news/2026/10/02/price-pressures-hit-firms-amid-uncertain-outlook-and-fears-of",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-02T09:39:20.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/price-pressures-hit-firms-amid-uncertain-outlook-and-fears-of-interest-rate-hikes/"
  },
  "original_language": "en",
  "account": "Inflation expectations among UK firms have risen, potentially prompting the Bank of England to increase interest rates, according to a recent survey. The Decision Makers' Panel, a monthly survey conducted by the Bank, revealed that price expectations for the next 12 months have increased from around 3.1% to 3.3%. This surge in expectations is attributed to the impact of escalating energy costs, which firms are increasingly passing onto consumers.\n\nThe majority of participating firms indicated that higher energy prices were significantly affecting their pricing strategies. Moreover, a growing number of businesses expressed significant uncertainty, weakening the overall stability of the UK economy. The survey's findings heavily influence the Bank's nine-member Monetary Policy Committee, which convenes to make decisions on monetary policy.\n\nRecent comments from Bank officials suggest that interest rates could be raised from the current 3.75% if global energy prices remain high. Brent crude oil, a key indicator of international oil prices, has risen to around $100 per barrel, a 40% increase from under $70 per barrel prior to the Middle East conflict. The Bank's main forecast predicts inflation may exceed 4% in the early months of next year.\n\nBank member Catherine Mann has advocated for rate hikes to maintain market credibility. Official Alan Taylor, while acknowledging the need for vigilance, suggested that interest rates should not be adjusted mechanically based solely on energy market fluctuations. Taylor highlighted the weak labor market and declining food inflation as evidence that inflation may not rise as rapidly as some economists anticipate. The collective data suggests the economy is currently less vulnerable to the inflationary pressures witnessed in 2022.",
  "summary": "Firms’ inflation expectations for the next 12 months rose higher, according to closely watched Bank of England survey, the results of which could pile pressure on policymakers to raise interest rates. The Bank’s monthly survey of firms’ price expectations, the Decision Makers’ Panel, showed price expectations becoming more jittery as costs from the energy price [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}