Finance
UK Companies Ramp up Selling Price Expectations, Bank of England Survey Shows
Published by Global Banking & Finance Review®
Posted on April 24, 2026
2 min readLast updated: April 24, 2026
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UK firms raised their year‑ahead expected selling price growth to 4.4% in April—up from 3.7% in March and marking the highest level since January 2024—according to the Bank of England’s Decision Maker Panel, signalling mounting inflationary pressures.
UK companies ramp up selling price expectations, Bank of England survey shows
Rising Price Expectations and Inflation Signals
April 24 (Reuters) - British businesses ramped up their expectations for selling prices in the year ahead, according to a survey published by the Bank of England on Friday that added to a run of strong inflation signals from companies.
Bank of England Decision Maker Panel Findings
The BoE's Decision Maker Panel showed companies in April expected price growth of 4.4% in the 12 months ahead, up from 3.7% in March and the highest reading since January 2024.
Comparisons with Other Business Surveys
Two long-running business surveys on Thursday showed record increases in some of their gauges of company pricing, raising a question mark over BoE Governor Andrew Bailey's view that businesses' pricing power is limited, in part because of a weakening labour market and tepid demand.
Regional Agents’ Insights
Another survey produced by the central bank's network of regional agents showed businesses seemed "minded to pass on at least some of the cost rises that have or are expected to come through, because their profit margins are already squeezed".
Companies were also worried about weakness of demand, meaning they are likely to raise prices cautiously, the agents' survey showed.
Sales Growth and Inflation Expectations
The Decision Maker Panel survey's gauge of expected sales growth in the year ahead fell to its lowest level since July 2020, when the COVID-19 pandemic was in full swing.
Expectations for consumer price inflation among companies for the next 12 months shot higher to 4.0% in April alone from 3.5% in March, the highest level since December 2023, although longer-term expectations were stable - something that will reassure members of the Monetary Policy Committee.
Wage Growth and Interest Rate Outlook
Wage growth expectations showed little change.
The BoE is expected to leave interest rates on hold on Thursday but investors, who expect between two and three quarter-point increases in borrowing costs this year, will be watching closely for any shifts in opinion among policymakers.
(Reporting by Andy BruceEditing by William Schomberg and Andrew Heavens)
Key Takeaways
- •April’s expected selling price growth jumped to 4.4%, the highest since January 2024, amid surging energy costs and Middle East conflict boosting firms’ cost pressures (moneyweek.com)
- •Office for National Statistics data show rising shares of firms planning price increases—22% for April and 28% for May—driven by energy, transport, and labour cost pressures (ons.gov.uk)
- •Consumer inflation remains elevated—CPI at 3.3% in March—and inflation expectations among households surged to 5.4%, reinforcing concerns over persistent inflation (moneyweek.com)
References
Frequently Asked Questions about UK companies ramp up selling price expectations, Bank of England survey shows
1What did the Bank of England survey reveal about UK companies?
The Bank of England survey showed UK companies expect higher selling prices in the next 12 months.
2What is the latest expected price growth from UK businesses?
UK businesses expect price growth of 4.4% in the next year, up from 3.7% in March.
3How does the recent price growth expectation compare to previous months?
The 4.4% price growth expectation is the highest since January 2024.
4Which surveys reflected record increases in company pricing?
Two long-running business surveys recently registered record increases in company pricing gauges.
