UK Companies Plan Price Hikes Amid Middle East War

On April 2nd, UK companies are gearing up to jack-up prices quicker than before, thanks to the

Middle East war spiking their costs. A fresh bank of England survey of over 2,000

chief financial officers shows they now expect to hide prices by 3.7% over. The next year,

up from 3.4% last month, overall inflation expectations jump to from 3% to 3.5%.

The real culprit is the effective shutdown of the Strait of Hormuz,

sending oil and gas prices through the roof and rippling into every industry.

Chancellor Rachel Reeves sat down with retail bosses this week at number 11 Downing Street

to hash out supply shortages and looming price surges. She's facing heat to shield households

from steeper gas and electric bills heading into next winter, plus scrap a planned five-pens per

liter fuel. Duty bump set for March. Bank of England policy makers are eyeing these pricing

plans hard as they mull rate hikes from the current 3.75% level. Markets are betting on two

increases by year end, flipping from earlier cut predictions. Governor Andrew Bailey

cautions that weak consumer spending might stop firms from fully passing on those costs.

With consumer price index inflation holding at 3% in February, but set to climb,

the pressure is building across the board.