UK Businesses Anticipate Modest Price Growth Amid Energy Price Concerns

UK businesses are expecting to raise their prices by slightly less than previously anticipated, according to the Bank of England's Decision Maker Panel survey. The survey found that companies expect price growth of 3.8% in the coming year, down from 3.9% in the previous three-month period.

This minor slowdown in inflationary pressures is a key takeaway from the survey, which underscores the BoE's cautious stance on interest rates. With wage growth expectations remaining unchanged at 3.4%, firms are indicating stable labour cost forecasts amidst heightened energy price concerns.

The Bank of England is closely monitoring business price and wage expectations to assess inflation risks, particularly following the recent surge in energy prices due to the Iran war. As a result, interest rates are expected to remain on hold this month, according to the BoE's outlook.