A Bank of England survey shows that British businesses plan to reduce price and wage increases next year, as energy prices briefly fell during the ceasefire in the Iran-Iraq war. The survey indicates that businesses expect prices to rise by 3.9% over the next 12 months, down from 4.1% (the highest level in over two years) previously, but still higher than the 3.4% predicted in February before the war. Expectations for wage growth next year fell by 0.1 percentage point to 3.4%. This data is likely to be welcomed by the Bank of England, which is closely monitoring business pricing and wage growth. The Bank of England is expected to keep interest rates unchanged next week.
