Input prices in the UK's services sector continue to rise sharply

Tim Moore, director of market economics at S&P Global Markets, commented on the UK services PMI: In March, input prices for the entire service sector in the UK continued to rise sharply, and its inflation rate was only slightly lower than the average of the past six months. Rising wages are the main reason for the increase in input costs and transportation expenses. The rate of price increase charged by service providers is the slowest since September 2023. However, the index has fallen only slightly since last summer and remains well above long-term trend levels, thus adding to the signs that the UK economy is facing sticky inflationary pressures so far this year.