British firms plan to raise prices and pay by slightly less over the coming year, a Bank of England survey found, days before the central bank sets interest rates. Expected price growth eased to 3.9% and wage growth expectations slipped to 3.4%.
British firms plan to raise prices and pay by slightly less over the coming year, according to a Bank of England survey published on Friday. The easing in inflation expectations lands just ahead of the central bank's next rate decision.
The bank's monthly Decision Maker Panel found companies in the three months to July expected price growth of 3.9% over the next 12 months. That reading fell from a more than two-year high of 4.1% recorded in the three months to June.
Still, the expectation remains above the 3.4% firms had projected in February, before the Iran war started. A ceasefire in that war briefly pushed down energy prices, the survey noted.
Pay plans softened too. Expectations for year-ahead wage growth fell 0.1 percentage points to 3.4%.
The data is likely to be welcomed by the central bank, which watches price setting by firms and wage growth closely. Policymakers are expected to keep interest rates on hold next week.
Source: Investing.com
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