BoE DMP Survey: UK firms’ inflation expectations rise to 2.7% in the December quarter

According to the latest Bank of England (BoE) Decision Maker Panel (DMP) quarterly survey released on Thursday, “one-year ahead expected CPI inflation by the UK companies rose by another 0.1 percentage points to 2.7% in the quarter to December.”

Key takeaways

Inflation expectations for the year ahead seen at 2.7% in Q4 versus the previous 2.6%.

Inflation expectations for three years ahead are seen at 2.6% in Q4, unchanged from the previous quarter.

Expected wage growth for the year ahead seen at 4.0% in Q4 versus 4.1% previous.

The survey is one of the most closely watched by members of the BoE's Monetary Policy Committee (MPC).

Market reaction

The Pound Sterling pays little heed to the UK businesses’ inflation expectations, as GBP/USD gains 0.15% on the day to trade near 1.2718, at the press time.