🌐 Global Economy Mar 26, 2026 · BankUnderground

Zooming in: firm-level expectations for economy-wide inflation

Bank of England Blog
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Zooming in: firm-level expectations for economy-wide inflation
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Federico Pessina, Maren Froemel and Ivan Yotzov







Understanding inflation expectations is key for monetary policy makers and has been central to the policy debate in recent years. We use data from the Decision Maker Panel (DMP) – an economy-wide UK business survey – to analyse businesses’ expectations about aggregate CPI inflation, and the relationship with their own-price expectations. On average, firms are attentive to current inflation rates, but larger and more productive firms report m

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