UK Companies Slow Price Hikes Amid Waning Inflation Worries

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

The expectations for wage growth remained steady at 3.4%, indicating no significant change in companies' plans to increase employee salaries. The Bank of England is closely monitoring both wage growth and price-setting by businesses to gauge broader inflation risks stemming from the surge in energy prices caused by the conflict in the Middle East.

Investors expect the central bank to raise interest rates for the first time since the war in Iran started, with a predicted quarter-point increase in November. This move would be the result of efforts to combat rising inflation and maintain economic stability.