The survey by the Bank of England shows that inflation expectations are rising, but wage prospects are cooling.

A survey released by the Bank of England on Friday showed that UK businesses surveyed in April expect the pace of price increases to exceed the levels before the outbreak in the Middle East, but wage growth is expected to slow down. The Bank of England's regional agents pointed out in another report that, although businesses are concerned about the conflict, "few businesses are currently reporting significant impacts on their output, business activities, and plans." The survey was conducted from April 2nd to 17th and interviewed about 2030 chief financial officers. Since the end of February when Iran was attacked, energy prices have soared and remained high. The survey found that businesses expect prices to rise by 3.8% in the next 12 months, higher than 3.5% in March. Businesses reported that their pricing increased by 3.7% in the year ending in April. Signs of rising inflation will be of concern to Bank of England policymakers, who will meet next week to formulate policies, with the key interest rate expected to remain unchanged at 3.75%.