The June DMP survey was conducted between 9 and 23 June and received 2,290 responses.
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%. Note that the DMP covers own prices from firms across the whole economy, not just consumer-facing firms.
Looking ahead, 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. Current CPI perceptions of firms were 8.9% (down from 9.8% in May) which is close to the 8.7% actual CPI inflation rate during the survey window.
In June, firms reported that annual unit cost growth remained stable at 9.4%, and expectations for year-ahead unit cost growth increased by 0.5 percentage points relative to May. However, the three-month averages were little changed.
Expected year-ahead wage growth slightly increased to 5.3% on the month in June (up from 5.2% in May) although the three-month moving average decreased by 0.1 percentage points to 5.3%.
In June, 47% of firms reported that the overall level of uncertainty facing their business was high or very high (down from 54% in May), but the three-month average increased slightly to 50%. This follows a clear downward trend in the series since September. Both sales and price uncertainty increased slightly in the monthly series, although the three-month moving averages decreased for both series. Price uncertainty remains at relatively high levels.