Britain's services sector recorded its fastest rate of input price inflation in more than three years in April, driven chiefly by rising fuel costs, according to a survey by S&P Global. Nearly six in ten firms surveyed reported that their average costs rose during the month, with fuel and higher wages cited as the main drivers and higher metals and plastics prices contributing as well.

The S&P Global services sector activity gauge rose to 52.7 in April from 50.5 in March. The services sector accounts for about 81% of Britain's economy.

Airlines and other companies have increasingly used fuel surcharges to offset rising costs. Brent crude fell below $100 a barrel on fresh hopes that U.S. efforts to reopen the Strait of Hormuz could succeed, as oil prices have fluctuated in recent months following developments in the Middle East.

Tim Moore, economics director at S&P Global, warned that the recent improvement in activity could prove short-lived. He said new business remained below earlier levels and that the Iran war was weighing on firms' investment confidence.

The widespread price rises will add pressure on the Bank of England to raise interest rates, even after policymakers voted to keep borrowing costs on hold. Bank of England Governor Andrew Bailey pointed to the role of energy supply disruption in shaping the outlook. "The longer this problem goes on and the longer the disruption to energy supplies goes on, the more difficult the scenario we're in," Bailey said.

Thomas Pugh, chief economist at RSM UK, said the path of monetary policy would hinge on energy markets. "Everything depends on how energy prices move going forward, but we still think the ultimate impact of the crisis will be a rising unemployment rate and weaker economic growth, which means any tightening cycle will be short and shallow. Clearly the risk of rate hikes is rising," Pugh said.