UK businesses see wage growth near 3.5% as price expectations rise

Oct 30, 2026 09:53 (5h ago)

UK businesses expect wage growth near 3.5%, while October respondents anticipated slightly faster price increases and slower wage increases.
The Decision Maker Panel reported unchanged expected wage growth of 3.4%, while BoE agents expect 2027 pay settlements near 3.6%.
The October survey covered 1,945 chief financial officers, with energy prices remaining high after the war between the U.S. and Iran began in late February.

UK businesses expect wage growth of roughly 3.5% over the coming year, while a separate October Bank of England survey found firms anticipating slightly faster price increases and slower wage increases than in the previous month. The Decision Maker Panel recorded expected wage growth of 3.4% over the next year, unchanged from its previous reading, while the Bank’s Agents’ Summary of Business Conditions put expected average pay settlements for 2027 at about 3.6%, similar to this year but slightly above its earlier forecast. The October survey questioned 1,945 chief financial officers between Oct. 2 and 16 and said energy prices had remained high since the war between the U.S. and Iran began in late February. Subdued labor-market conditions are limiting wage pressure, but pay and price expectations remain relevant to policymakers assessing broader inflation risks.