Cost pressures are spreading among UK businesses at a record pace

Golden Ten Data reported on April 23 that a PMI survey shows more UK companies have reported rising costs this month, with the increase reaching a record high. This clearly signals higher inflation ahead as the impact of the Iran war spreads across the economy. The composite PMI input price index recorded its largest gain in 28 years, reaching the highest level since double-digit inflation appeared at the end of 2022. This survey may intensify concerns at the Bank of England that a sharp rise in energy prices could trigger broader inflation expectations; however, to what extent the deterioration in labor market conditions will help contain this remains a key issue.