The Bank of England said on Friday an Oct. 2-16 survey of about 1,945 CFOs
showed firms expect selling prices to rise 3.8% over the next 12 months, up from
a 3.7% expectation in September. Firms reported selling prices rose 3.8% in the
year to October. On a three-month average, firms expect one-year-ahead output
price inflation to be unchanged. Firms reported wages rose 3.9% in the year to
October, down from 4.0% in September, and expect wages to rise 3.4% over the
next 12 months—implying a 0.5 percentage-point slowdown. The Bank of England
said there is little sign rising prices are feeding through into faster wage
growth that could trigger a new round of price increases.
