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UK firms see smaller price rises, wage growth steady, BoE survey shows - Finance news and analysis from Global Banking & Finance Review
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UK firms see smaller price rises, wage growth steady, BoE survey shows

Published by Global Banking & Finance Review

Posted on October 2, 2026

1 min read

· Last updated: October 2, 2026

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UK Firms Anticipate Smaller Price Rises and Stable Wage Growth: BoE Survey

Bank of England Survey Insights on Price and Wage Expectations

Price Growth Expectations

LONDON, Oct 2 (Reuters) - British firms expect to raise their prices slightly less quickly in the coming 12 months, a survey published by the Bank of England on Friday showed.

The monthly Decision Maker Panel showed companies in the three months to September expected price growth of 3.7% in the year ahead, slowing from 3.8% in the previous survey covering the three months to August.

Wage Growth Outlook

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

Inflation Risks and Central Bank Response

The BoE is watching wage growth and price-setting by companies to gauge broader inflation risks from the surge in energy prices caused by the conflict in the Middle East.

Investors expect the central bank will increase borrowing costs by a quarter-point in November in what would be the first interest rate hike since the war in Iran started.

(Reporting by Suban AbdullaEditing by William Schomberg)

Key Takeaways

  • Year‑ahead output price expectations slipped from 3.8 % in August to 3.7 % in September, suggesting modest easing in anticipated cost pressures (investing.com)
  • Wage growth expectations remain steady at 3.4 %, indicating firms don’t foresee further acceleration in labour costs (investing.com)
  • Market sentiment points to a likely quarter‑point BoE rate rise in November—the first since the Iran conflict heightened energy‑price risks (apnews.com)

References

Frequently Asked Questions

What are UK firms expecting regarding price growth for the next year?
British companies anticipate price growth of 3.7% in the year ahead, slightly down from previous expectations.
How have wage growth expectations changed according to the BoE survey?
Year-ahead wage growth expectations remained steady at 3.4% according to the latest BoE Decision Maker Panel.
Why is the Bank of England monitoring price and wage growth?
The BoE is monitoring these metrics to assess inflation risks, especially due to surging energy prices from the Middle East conflict.
What are investors expecting from the Bank of England in November?
Investors expect the BoE to raise borrowing costs by a quarter-point, marking the first interest rate hike since the war in Iran began.

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