Bank of England survey shows firms expect lower price and wage growth
The Bank of England's latest Decision Maker Panel survey indicates that firms expect a moderation in both their own-price and wage growth over the next year. The December 2025 survey also showed a slight improvement in realised employment growth.
Inflation expectations ease
Firms reported their realised annual own-price growth fell by 0.1 percentage points to 3.7% in the three months to December.
Year-ahead expected own-price inflation also declined by 0.1 percentage points to 3.6%.
Year-ahead CPI inflation expectations remained stable at 3.4%, with three-year-ahead expectations at 2.9%.
Wage growth moderates, employment stabilizes
Annual wage growth reported by firms was 4.4% in the three months to December, down 0.1 percentage points from the previous period.
Expected year-ahead wage growth also fell slightly by 0.1 percentage points to 3.7%.
Realised annual employment growth improved to -0.4% from -0.7% in November, though year-ahead expectations for employment growth weakened slightly to -0.4%.