UK firms expect to raise prices more quickly as Iran war pushes up costs
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%.The effective closure of the strait of Hormuz has driven up oil and gas prices significantly and led to predictions of wider price rises, as the impact of these higher costs hits industry.The latest example came on Thursday when the UK cleaning product group McBride, whose brands include Oven Pride and Clean n Fresh, said it would raise its prices as a result of “elevated input costs”.It said the increase would help it recover “higher, beyond our control, cost impacts from the Middle East conflict”.The chancellor, Rachel Reeves, met retail executives on Wednesday at No 11 Downing Street to discuss the risks of supply shortages and price increases.
She has also come under pressure to cushion the blow of likely rises in household gas and electricity bills before next winter and halt plans for a 5p a litre increase in fuel duty, due to take effect by next March.Reeves has repeatedly made clear that any help for households will be “targeted”, unlike the costly across-the-board support offered by the Liz Truss government as energy prices soared in the wake of Russia’s invasion of Ukraine four years ago.The Bank of England’s policymakers will be watching UK companies’ pricing intentions closely, as they weigh up whether to raise interest rates in the coming months from their current level of 3.75%, in the face of higher inflation.Financial markets are currently pricing in two interest rate rises by the end of the year – a sharp turnaround from expectations of rate cuts, before the war began.
However, the Bank’s governor, Andrew Bailey, has warned that markets may be “getting ahead of themselves” and weak consumer demand may prevent companies passing on cost increases to their customers.“Businesses consistently say to me that they’re operating in a context of an absence of pricing power,” he told Reuters on Wednesday.Some analysts agree that an economic slowdown is a more pressing concern than inflation.Andrew Goodwin, the chief UK economist at consultancy Oxford Economics, predicted interest rates would remain on hold at 3.75% for a “prolonged period”, as consumers cut back on spending.
Pointing to rapid increases in the cost of petrol and diesel, he said that “if pump prices continue to rise, we’re likely to see fuel demand contract and discretionary spending begin to be squeezed”.Inflation on the consumer price index targeted by the Bank was steady at 3% in February but is now expected to rise.
Oil price jumps and markets slide after Trump warning to Iran
Oil prices soared and stocks sank after Donald Trump vowed in a televised speech to hit Iran “extremely hard” over the coming weeks, knocking hopes of a near-term end to the conflict in the Middle East.Brent crude prices jumped by 8% on Thursday morning to pass $109 (£82) a barrel, reversing Wednesday’s drop when hopes of a de-escalation in the Iran war pushed the international benchmark below the $100-a-barrel mark at one point.The cost of oil produced in the US also jumped, with a barrel of West Texas Intermediate – crude that is drilled and processed in the US – rising by 11% to $111.60 a barrel, over the $110 mark for the first time since 9 March.Stocks in Asia suffered, with Japan’s Nikkei index falling 2
US crude oil hits $110 a barrel and markets drop as Trump dashes Iran de-escalation hopes – as it happened
US crude has surged over $110 a barrel today, for the first time in over three weeks.The price of a barrel of West Texas Intermediate has jumped by 10% today, after US President Donald Trump vowed to hit Iran “extremely hard” for the next few weeks, dashing hopes of de-escalation and an early end to the conflict.US crude is trading at $111 a barrel, the highest level since 9 March.This puts a barrel of WTI above the international benchmark, Brent crude, which has jumped more than 8% to $109.32 a barrel
Goodbye mrbrightside416: Google allows users to alter quirky Gmail addresses
Did your McLovin!1976!@gmail.com email address seem funny at the time but less so now you are applying for dozens of jobs?Google has said it is giving US users a chance to appear more professional by letting them change their Google account username – whatever appears before @gmail.com in an email address – without losing access to their account.However, the tech company will limit the name changes to one per 12 months. In an example shared online by Google, the email address sk8tergrl123
Pupils in England are losing their thinking skills because of AI, survey suggests
Pupils using artificial intelligence are losing their capacity for critical thinking, according to a survey of secondary school teachers in England.Two-thirds said they had observed the decline among children who they also said no longer felt the need to spell because of voice-to-text technology.“Students are losing core skills – thinking, creativity, writing, even how to have a conversation,” one teacher told the National Education Union poll.“AI is destroying what ‘learning’ – problem-solving, critical thinking and collaborative effort – is,” said another. A third anonymous contributor added: “Children no longer feel the need to spell as voice-to-text replaces knowledge
‘World is his oyster’: new Derbyshire home and mentor offer Shoaib Bashir fresh start
A new season dawns and for Shoaib Bashir it represents a new beginning. Overlooked by England for the entire Ashes despite two years of investment, and having had a nomadic career up to this point, the former Surrey youth player has joined Derbyshire on a two-year deal in the hope of calling somewhere home.Not that the off-spinner’s goals have changed. In his first media appearance since that winter carrying drinks, the 22-year-old is determined to win back his Test spot. Swapping Somerset for Derbyshire is a case of looking for regular game time, plus the chance to work with a decorated head coach in Mickey Arthur
Weakened Leicester show why away sides need Champions Cup miracles
The odds on multiple away wins in this weekend’s Champions Cup last 16 are not terribly good. Since the single-leg concept was born three years ago there have been 24 matches, with the hosts losing only two. If that strike rate alters significantly this time it will certainly confound the bookmakers.Bordeaux Bègles, the defending champions, have even been quoted at 1-100 to beat Leicester on Sunday, a remarkable price for a two-horse race. It might be slightly different if the Tigers were at full strength but, as the bookies are keenly aware, that is very much not the case with, among others, Ollie Chessum, Joe Heyes and Nicky Smith all non-runners
‘After one gig, someone stole my car with my dole money in it’: Morcheeba on how they made The Sea
Jayson Gillham announces tour with Palestinian-Jordanian musician ahead of MSO court case
Fill that Glasto-shaped hole! The 40 best UK festivals you can still book
Shaun Micallef: ‘Charlie Pickering said that’s the only thing keeping him going – to vanquish me’
The Guide #236: Is celebrity casting a cynical marketing stunt or does it help to democratise theatre?
I thought I’d been coping with my sister’s death – a Taylor Swift song showed me I hadn’t