BoE Survey: UK Firms Tame Price Hikes Amid Energy Crisis

British companies expect to raise their prices at a slightly slower rate in the coming year, according to the Bank of England's Decision Maker Panel. The monthly survey showed that businesses anticipate a 3.7% price growth in the next 12 months, down from 3.8% in the previous period.

Wage growth expectations remain steady at 3.4%, which is in line with last month's survey results. The Bank of England is closely monitoring wage growth and price-setting by companies as it assesses broader inflation risks due to the surge in energy prices caused by the conflict in the Middle East.

The central bank is expected to raise borrowing costs for the first time since the Iran war started, with investors anticipating a quarter-point interest rate hike in November. This decision would be closely watched by financial markets and could have implications for the UK economy.