Bank of England Survey Shows Cooling UK Price Pressures

A survey of 2,012 chief financial officers conducted by the Bank of England between August 7 and 21 indicates a cooling of price pressures for businesses in the United Kingdom. Polled businesses expect the prices they charge to rise by 3.8% over the next 12 months, a slight decrease from the 3.9% expectation reported in July.

Wage growth is also forecasted to slow, with businesses expecting a 3.4% increase over the next year, down from the 4% rise recorded in the year leading up to August. Despite high energy prices resulting from a seven-month conflict between the United States and Iran, the data suggests these costs have not yet triggered a broader inflationary surge.

These findings provide evidence for the central bank's rate setters as they prepare for their meeting later this month. The data supports expectations that the Bank of England will maintain the key interest rate at 3.75%.