May 31, 2012 / 6:30 AM / 6 years ago

BoE's Bean: some UK firms can't pass on higher costs

LONDON (Reuters) - A number of regional businesses in Britain are unable to pass on higher costs including from higher energy prices, Bank of England Deputy Governor Charlie Bean said in a newspaper interview published on Thursday.

Pedestrians pass The Bank of England in the City of London February 14, 2012. REUTERS/Olivia Harris

Bean gave the interview during a visit to local business leaders in Norfolk, in eastern England.

“A number of them were talking about the extent to which their margins were being squeezed and they are unable to push through price increases despite the rise in costs which often might be reflected in things like higher energy prices,” Bean told the Eastern Daily Press.

“That intelligence on demand growth and inflationary pressures is a valuable input to our thinking at the bank,” he added.

British inflation fell to 3.0 percent in April, its lowest rate in more than two years, but has been above the BoE’s 2 percent target for almost 2-1/2 years.

Reporting by Tim Castle; editing by Adveith Nair

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