UK Inflation Pressures Mount As Bounce-Back Slows Only Slightly -PMI

• Inflation pressures faced by British firms hit record levels this month, and growth in the private sector cooled only slightly from an all-time high in May when coronavirus restrictions were lifted, a survey showed on Wednesday. 
• The preliminary reading of the IHS Markit/CIPS UK Composite Purchasing Managers' Index (PMI) pointed to one of the strongest monthly improvements in business activity since 1998, with a reading of 61.7 - not far off May's unprecedented 62.9. 
• Input costs matched a previous record increase from June 2008 and prices charged by firms rose by the largest amount since these records began in 1999, as disruption to supply chains caused a scramble for components. 
• Inflation faced by consumers could now have a lot further to rise after breaking above the Bank of England's 2% target last month, said Chris Williamson, chief business economist at IHS Markit, which compiles the survey. 
• The BoE is not expected to change monetary policy when it announces the outcome of its June policy meeting on Thursday, but investors are waiting to hear whether it is sticking to its view that the rise in inflation is likely to prove transient.

(Source: Reuters)