MNI BRIEF: Rising UK Wage Growth, Inflation Outlook-BOE Survey
UK companies see rising inflation expectations and higher wages, Bank's DMP survey shows.
UK businesses still see inflationary pressures in the coming years, although only at a slightly faster pace than in seen in November, according to the December edition of the Bank of England Decision Makers' Panel survey.
The DMP survey sees CPI inflation expectations for 12 months ahead at 7.4%, up from 7.2% a month ago, with the 3-year ahead expectation 0.1% higher at 4.0%.
Worryingly for some policymakers on the BOE's Monetary Policy Committee, wage growth expectations again edged higher, with the outlook for the next 12 months 0.5 percentage points higher at 6.3%. However, firms reported that recruitment difficulties were easing, with just 71% of firms now seeing more challenging hiring conditions, down from 78% in November,