UK Firms Tame Price Hikes Amid Energy Crisis

British businesses are planning to raise their prices at a slightly slower rate in the coming year, according to the Bank of England's latest survey. The monthly Decision Maker Panel showed that companies expect price growth of 3.8% over the next 12 months, down from 3.9% in the previous survey covering July. This moderation in price-setting comes as energy prices surge due to the Iran conflict. The central bank is closely monitoring these developments, particularly wage growth, which it sees as a key inflation risk.

The Bank of England's survey also showed that expectations for year-ahead wage growth remained steady at 3.4%. The central bank has indicated that it will keep interest rates on hold this month, as it continues to assess the broader inflation risks.