UK firms expect to raise prices more quickly as Iran war pushes up costs

The Guardian · 🇬🇧 public United Kingdom · Apr 02, 2026 · 364 words · By Heather Stewart

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What to know about 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.

Claims checked 12

Techniques found 0

Topics 0

Coverage spectrum

Coverage gap: Low Left coverage

Left14%

Center72%

Right14%

7 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.

What happened

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.

Why it matters

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.

Common ground

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%.

Perspective signals

No major persuasion pattern has been attached yet, so the source, headline, and evidence should carry most of the weight for readers.

Follow-up questions

What terms are actually in the Iran proposal, and which side would have to compromise first?
What evidence would most clearly confirm or weaken the claim that 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?
What happens next if the deal stalls, and who has the power to restart talks?

open_in_new Read the original article: https://www.theguardian.com/business/2026/apr/02/uk-firms-expect-to-raise-prices…

fact_checkClaims Checked

eFinder analyzed this article and checked 12 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.

help Insufficient Evidence 7

verified Verified By Reference 3

schedule Pending 2

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Claim 1: “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.”

VERIFIED BY REFERENCE

This claim was extracted as a checkable statement from the article. eFinder labels it verified by reference based on the available evidence and source context shown below.

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wikipedia NEUTRAL — Afua Serwah Kyei (born 15 October 1982) is a British financial executive who has been chief financial officer (CFO) of the Bank of England since 2019.
https://en.wikipedia.org/wiki/Afua_Kyei

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wikipedia NEUTRAL — Banking in the United Kingdom encompasses a system of banks and bank-like financial institutions that provide financial services to consumers and businesses, overseen by regulators and ultimately, the…
https://en.wikipedia.org/wiki/Banking_in_the_United_Kingdom

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wikipedia NEUTRAL — Berkshire Bank is an American bank based in Boston, Massachusetts that operates 83 branches in New England, and New York; it is the third largest regional bank headquartered in Massachusetts.
https://en.wikipedia.org/wiki/Berkshire_Bank

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Claim 2: “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%.”

INSUFFICIENT EVIDENCE

This claim was extracted as a checkable statement from the article. eFinder labels it insufficient evidence based on the available evidence and source context shown below.

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Claim 3: “‘Businesses consistently say to me that they’re operating in a context of an absence of pricing power,’ he told Reuters on Wednesday.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

help

Claim 4: “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.”

INSUFFICIENT EVIDENCE

This claim was extracted as a checkable statement from the article. eFinder labels it insufficient evidence based on the available evidence and source context shown below.

help

Claim 5: “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.”

INSUFFICIENT EVIDENCE

This claim was extracted as a checkable statement from the article. eFinder labels it insufficient evidence based on the available evidence and source context shown below.

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Claim 6: “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.”

INSUFFICIENT EVIDENCE

This claim was extracted as a checkable statement from the article. eFinder labels it insufficient evidence based on the available evidence and source context shown below.

schedule

Claim 7: “Inflation on the consumer price index targeted by the Bank was steady at 3% in February but is now expected to rise.”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

verified

Claim 8: “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.”

VERIFIED BY REFERENCE

This claim was extracted as a checkable statement from the article. eFinder labels it verified by reference based on the available evidence and source context shown below.

menu_book

wikipedia NEUTRAL — The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government's banker and debt m…
https://en.wikipedia.org/wiki/Bank_of_England

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wikipedia NEUTRAL — This list comprises banks operating in the United Kingdom that are authorised and prudentially regulated by the Prudential Regulation Authority (PRA), a part of the Bank of England. The PRA is respons…
https://en.wikipedia.org/wiki/List_of_banks_in_the_United_Ki…

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wikipedia NEUTRAL — The Middle East is a geopolitical region encompassing the Arabian Peninsula, Egypt, Iran, Iraq, the Levant, and Turkey. The term came into widespread usage by Western European nations in the early 20t…
https://en.wikipedia.org/wiki/Middle_East

verified

Claim 9: “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.”

VERIFIED BY REFERENCE

This claim was extracted as a checkable statement from the article. eFinder labels it verified by reference based on the available evidence and source context shown below.

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wikipedia NEUTRAL — On 19 March 2026, the United States began an aerial campaign against Iranian targets to reopen the Strait of Hormuz following its closure by Iran in response to the 2026 Iran war. The operation was an…
https://en.wikipedia.org/wiki/2026_Strait_of_Hormuz_campaign

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wikipedia NEUTRAL — The Strait of Hormuz, a major maritime choke point for global energy trade, has experienced ongoing geopolitical and economic disruption since 28 February 2026, following joint military strikes by the…
https://en.wikipedia.org/wiki/2026_Strait_of_Hormuz_crisis

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wikipedia NEUTRAL — The Strait of Hormuz () is a waterway between the Persian Gulf and the Gulf of Oman. On the north coast lies Iran, and on the south coast lies the Musandam Peninsula, shared by the United Arab Emirate…
https://en.wikipedia.org/wiki/Strait_of_Hormuz

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Claim 10: “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.”

INSUFFICIENT EVIDENCE

This claim was extracted as a checkable statement from the article. eFinder labels it insufficient evidence based on the available evidence and source context shown below.

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Claim 11: “The chancellor, Rachel Reeves, met retail bosses on Wednesday at No 11 Downing Street to discuss the risks of supply shortages and price increases.”

INSUFFICIENT EVIDENCE

This claim was extracted as a checkable statement from the article. eFinder labels it insufficient evidence based on the available evidence and source context shown below.

help

Claim 12: “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%.”

INSUFFICIENT EVIDENCE

This claim was extracted as a checkable statement from the article. eFinder labels it insufficient evidence based on the available evidence and source context shown below.

info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.