UK executives expect inflation to squeeze profits

Falling margins: Shoppers leave a Tesco supermarket in Essex. Britain’s biggest retailer has warned that its profits would drop because of surging inflation, dragging down share prices across the grocery sector. — Bloomberg

LONDON: More than seven out of 10 chief financial officers (CFOs) at Britain’s biggest companies expect high inflation to reduce their profit margins, and few see the Bank of England (BoE) getting inflation under control in the next couple of years.

A quarterly survey from accountants Deloitte showed a record 98% of CFOs expect their operating costs to rise over the coming year, and 71% expect their operating margins to fall, up from 44% in the previous quarter.