UK firms expect to raise prices more quickly as Iran war pushes up costs

Bank of England survey in March shows chief financial officers foresee 3.7% increase over coming year

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Companies in the UK expect to raise their prices more rapidly over the coming months as the war in the Middle East drives up costs, Bank of England research shows.

The Bank’s regular survey of more than 2,000 chief financial officers conducted last month, after the Iran conflict began, shows they now expect to raise their prices by 3.7% over the coming year.

That was a rise from 3.4% in February, while the bosses’ expectation of inflation across the economy has risen from 3% to 3.5%.