Bank of England Survey Shows Businesses Plan Smaller Price and Wage Increases

A Bank of England survey released on Friday showed that British companies expect to raise prices and wages only modestly next year after energy prices briefly fell during the Iran war ceasefire. According to Jin10, firms expect prices to rise 3.9% over the next 12 months, down from 4.1% and above the 3.4% forecast before the war began in February. Expectations for wage growth next year fell 0.1 percentage point to 3.4%. The data may be welcomed by the Bank of England, which is closely watching business pricing and wage growth. The central bank is expected to leave interest rates unchanged next week.