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UK firms plan slightly smaller price rises, BoE survey shows - Finance news and analysis from Global Banking & Finance Review
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UK firms plan slightly smaller price rises, BoE survey shows

Published by Global Banking & Finance Review

Posted on September 4, 2026

1 min read

· Last updated: September 4, 2026

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UK Firms Anticipate Slower Price Growth, BoE Survey Indicates Modest Outlook

Bank of England Survey Highlights Business Expectations

Survey Overview and Key Findings

Price Growth Expectations

LONDON, Sept 4 (Reuters) - British businesses expect to increase their prices slightly less quickly in the year ahead, according to a survey published by the Bank of England on Friday.

The monthly Decision Maker Panel showed companies in the three months to August expected price growth of 3.8% in the coming 12 months, slowing from 3.9% in the previous survey covering the three months to July.

Wage Growth Projections

Expectations for year-ahead wage growth held at 3.4%.

Bank of England's Policy Considerations

Inflation Risks and Interest Rate Outlook

Central Bank's Focus

The central bank is closely watching price-setting by firms and wage growth as it tries to assess the broader inflation risks from the surge in energy prices caused by the Iran war. It is expected to keep interest rates on hold this month.

(Writing by William Schomberg; editing by Sarah Young)

Key Takeaways

  • Firms expect year-ahead price growth to ease from 3.9% to 3.8%, indicating a minor slowdown in inflationary pressures.
  • Wage growth expectations remain unchanged at 3.4%, suggesting stable labour cost forecasts amid heightened energy price concerns.
  • The Decision Maker Panel survey underscores the BoE’s cautious stance, reinforcing expectations that interest rates will be held steady.

Frequently Asked Questions

What price growth do UK businesses expect over the next year?
UK businesses expect price growth of 3.8% over the coming 12 months, according to the Bank of England survey.
How does expected price growth compare to the previous survey?
Expected price growth slowed slightly to 3.8%, down from 3.9% in the previous three-month survey.
What is the expected wage growth in the coming year?
British firms expect year-ahead wage growth to remain at 3.4%.
Why is the Bank of England monitoring business price and wage expectations?
The Bank of England monitors price and wage expectations to assess inflation risks, especially after the recent surge in energy prices.
Are UK interest rates expected to change this month?
Interest rates are expected to remain on hold this month, according to the Bank of England's outlook.

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