The latest survey conducted by the Bank of England (BoE) Monthly Decision Maker Panel (DMP) revealed on Thursday, the UK businesses projected year-ahead Consumer Price Index (CPI) inflation at 5.7% in June vs. 5.9% estimated in May.

Additional findings

“Realised output price inflation declined to 6.9% in June, down from 7.6% in May. The three-month moving average also fell from 7.6% to 7.3%.”

“Businesses expect output price inflation to fall over the next year as the year-ahead output price inflation was expected to be 5.3% in the three months to June, down from 5.4% in the three months to May. “

“One-year ahead CPI inflation expectations decreased to 5.7% in June, down from 5.9% in May. However, three-year ahead CPI inflation expectations slightly increased to 3.7% in June, up 0.2 percentage points relative to May.” 

Market reaction

GBP/USD keeps its range above 1.2700, last seen trading at 1.2712, up 0.07% on the day.