A Bank of England survey released Friday showed UK firms expect prices to rise
3.9% over the next 12 months, down from 4.1% previously (a two-year high) but
still above the pre-war February forecast of 3.4%. Firms flagged a temporary
fall in energy prices during the Iran ceasefire as reducing planned increases.
Pay growth expectations eased 0.1ppt to 3.4%. The reading may be welcomed by the
Bank of England, which is closely monitoring firms' pricing and wage intentions;
the BoE is expected to leave rates unchanged next week.
