British businesses ramped up their expectations for selling prices in the year ahead, according to a survey published by the Bank ​of England on Friday that added to a run of ‌strong inflation signals from companies.

The BoE’s Decision Maker Panel showed companies in April expected price growth of 4.4 per cent in the 12 months ahead, up from 3.7 per cent in ​March and the highest reading since January 2024.

Two long-running business ​surveys on Thursday showed record increases in some of their ⁠gauges of company pricing, raising a question mark over BoE Governor Andrew Bailey’s ​view that businesses’ pricing power is limited, in part because of a weakening ​labour market and tepid demand.

Another survey produced by the central bank’s network of regional agents showed businesses seemed “minded to pass on at least some of the cost ​rises that have or are expected to come through, because their profit ​margins are already squeezed”.

Companies were also worried about weakness of demand, meaning they are ‌likely ⁠to raise prices cautiously, the agents’ survey showed.

The Decision Maker Panel survey’s gauge of expected sales growth in the year ahead fell to its lowest level since July 2020, when the COVID-19 pandemic was in full ​swing.

Expectations for consumer ​price inflation among ⁠companies for the next 12 months shot higher to 4.0 per cent in April alone from 3.5 per cent in March, the ​highest level since December 2023, although longer-term expectations were ​stable – ⁠something that will reassure members of the Monetary Policy Committee.

Wage growth expectations showed little change.

The BoE is expected to leave interest rates on hold on ⁠Thursday ​but investors, who expect between two and ​three quarter-point increases in borrowing costs this year, will be watching closely for any shifts in ​opinion among policymakers.