UK firms to launch price hike spree as Bank of England prepares to lift rates again

A record proportion of UK firms are preparing to hike prices in a further sign of the scale of inflationary pressures sweeping throughout the economy, reveals a closely watched survey released today.

The fresh figures provide further incentives for the Bank of England to hike interest rates for the third meeting in a row when it announces its next decision this Thursday.

IHS Markit’s, the firm that compiled the figures, data reinforces predictions that the already historic high cost of living in the UK is set to get even worse in the coming months.

A net 62 per cent of firms are intending to raise prices, the highest proportion ever recorded since records again over 10 years ago.

Prices are already accelerating at the fastest rate since 1992, up 5.5 per cent over the last year.

The cost of living crunch has led a wave of experts to revise down their forecasts for UK economic growth this year on concerns consumers will slash spending amid the worst drop in living standards in a generation.

Economists at KPMG think inflation could reach 10 per cent in October when the energy regulator hoists the cap on bills even further to account for higher oil and gas prices caused by the Russia Ukraine conflict.

Threadneedle Street is expected to lift interest rates a further 25 basis points, which would mark a third successive rate hike.