British businesses expect to increase prices and wages by a bit less in the year ahead after a ceasefire in the Iran war briefly pushed down energy prices, according to a survey published by the Bank of England on Friday.
The monthly Decision Maker Panel showed companies in the three months to July expected price growth of 3.9% in the coming 12 months, down from a more than two-year high of 4.1% in the three months to June although still above the rate of 3.4% expected in February before the war started.
Expectations for year-ahead wage growth fell 0.1 percentage points to 3.4%.
The data is likely to be welcomed by the central bank which is closely watching price setting by firms and wage growth. It is expected to keep interest rates on hold next week.
(Reporting by Suban AbdullaEditing by William Schomberg)
