Airlines among companies using fuel surcharges to cover surge in costs, UK survey shows

UK services firms are increasingly passing higher fuel costs through via surcharges and price increases, with S&P Global saying average costs rose for nearly six in 10 companies in April and prices-charged inflation hitting a three-year high. Airlines are a visible example: IAG flagged pricing adjustments tied to fuel, while Virgin Atlantic introduced charges of £360 on business class tickets and £50 on economy, underscoring how energy shock inflation is filtering into consumer prices. For precious metals, the main takeaway is a firmer inflation/rates backdrop that supports gold on a macro basis, even as Brent crude dipped back below $100/bbl on hopes of easing Hormuz disruptions. The Bank of England is being pushed toward tighter policy by the price surge, but economists still see the ultimate hit from the Iran war as weaker growth and rising unemployment, which could limit the depth of any hiking cycle. Near term, gold will likely trade on the balance between sticky services inflation and any further swing in energy prices and central-bank rhetoric.