Almost a third of UK companies plan to use algorithmic tools to set prices in response to market conditions, according to Bank of England analysis that suggests it will become more challenging for the central bank to track trends in inflation.
Clare Lombardelli, the central bank’s deputy governor for monetary policy, said in an article published on Tuesday that all sectors were set to increase their use of dynamic and personalised pricing over the next year, judging by BoE surveys of business leaders.
The sharpest increase will be in the use of tools that adjust prices in response to changes in demand, capacity or competitors’ moves, she wrote — with 31 per cent of firms planning to use these tools in a year’s time, compared with 21 per cent now.