LONDON, (Reuters) – A record number of British businesses and professionals expect prices to rise over the coming three months due to rising cost pressures. This is in line with the Bank of England’s inflation challenge.

According to the Confederation of British Industry, business and professional service firms are more likely than ever to increase prices since 1998 when the survey was started. The pricing plans of consumer services firms were at their highest level since 2007.

Firms’ bottom lines and profitability are being impacted by rising inflation and costs. Charlotte Dendy from the CBI, head of economic survey said that the spectres of more price hikes are being felt all over the country.

To stop an energy-driven rise in inflation that has reached a 30-year peak, and shift businesses’ pricing patterns upwards long term, the BoE increased interest rates twice.

According to financial markets, the central bank will raise interest rates once again in this month. Interest rates are expected to rise to 1.5% by August from 0.5% right now.

CBI’s quarterly survey was conducted between Jan. 28 and Feb. 15. It showed slower sales growth than in the prior three months. This is because many businesses were affected by Omicron, a coronavirus.

However, investment and hiring intentions are strong. Businesses expect a rise in sales volumes for the next quarter.