UK firms predict slower rise in prices than in April, BoE survey shows

LONDON - British businesses expect to increase prices less quickly in the year ahead than they did in April as some of the initial energy price shock caused by the Iran war fades, according to a survey published by the Bank of England on Friday.

The BoE's Decision Maker Panel showed companies in May expected price growth of 4.0% in the coming 12 months, down from a more than two-year high of 4.4% in April though still above the 3.4% expected in February before the conflict started.

On a three-month moving-average basis, price expectations rose by 0.2 percentage points to 4.0%, the highest since February 2025.

Expected year-ahead wage growth held steady at 3.4% on a three-month moving-average basis last month, its joint-lowest since regular polling began in July 2022.

(Reporting by Suban Abdulla; editing by David Milliken)

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This story was originally published June 5, 2026 at 1:51 AM.