The latest survey conducted by the Bank of England (BOE) decision maker panel (DMP) showed that inflation expectations are seen bumping up sharply in the coming months, per Reuters.
Key findings
Over the past 12 months to June, average unit costs were estimated to have increased by 9.5%.
Over the next 12 months, firms expected unit cost growth to be 8.2%.
Perceptions of current CPI inflation averaged 8.7% in the June survey, 0.3pp lower than the official ONS CPI inflation rate.
Looking ahead, DMP members expected CPI inflation to be 7.4% one-year ahead and 4.0% in three years' time.
88% of firms reported they were finding it harder to recruit new employees compared to normal.
58% of respondents reported that uncertainty for their business was 'high' or 'very high' at the moment, 4 percentage points higher than in May.
Market reaction
GBP/USD is unperturbed by the BOE survey results, as the pound continues to sink on news that UK PM Boris Johnson is set to announce his resignation amidst the ongoing political drama.
The pair is trading at 1.1965, still up 0.32% on the day, having faced rejection at 1.1995.