UK Firms Trim 12-Month CPI View but See Faster Price Rises Ahead

British companies have slightly lowered their view of consumer-price growth, according to the Bank of England’s Decision Maker Panel survey for July. Respondents now expect inflation to run at 3.2% over the next 12 months, down from 3.3% in June and just below the consensus forecast of 3.3%. The poll of senior executives also shows firms plan to raise the prices they charge at a faster pace. Three-month ahead output price expectations edged up to 3.7%, exceeding both June’s 3.6% reading and economists’ 3.6% projection. The mixed signals come as the Bank of England weighs how quickly to bring inflation back to its 2% goal after a prolonged period of above-target price growth.