UK firms plan slightly smaller price rises, BoE survey shows

LONDON, Sept 4 (Reuters) - British businesses expect to increase their prices slightly less quickly in the year ahead, according to a survey published by the Bank of England on Friday.

The monthly Decision Maker Panel showed companies in the three months to August expected price growth of 3.8% in the coming 12 months, slowing from 3.9% in the previous survey covering the three months to July.

Expectations for year-ahead wage growth held at 3.4%.

The central bank is closely watching price-setting by firms and wage growth as it tries to assess the broader inflation risks from the surge in energy prices caused by the Iran war. It is expected to keep interest rates on hold this month.

(Writing by William Schomberg; editing by Sarah Young)