LONDON, July 7 Reuters Fewer British firms plan to raise their prices in the coming months, according to a survey that will give reassurance to the Bank of England as it considers the possibility of cutting interest rates as soon as next month.

In a latest sign of the improving economic picture inherited by new Prime Minister Keir Starmer, the British Chambers of Commerce said 39 of member companies it surveyed expected to raise prices over the next three months, down from 46 in its previous survey published in April.

Concern about inflation among businesses has dropped to levels last seen in 2021, David Bharier, head of research at the BCC, said. A Bank Rate cut later this year will help bring down borrowing costs.

The chance of the BoE cutting its benchmark Bank Rate to 5.0 from 5.25 on Aug. 1 is seen as more than 5050 by investors after headline inflation recently fell to the central bank39;s 2 target and measures of inflation pressure also eased.

The BCC survey showed sales and cashflow improved in the second quarter of 2024 to prepandemic levels and the share of firms expecting an increase in turnover in the next 12 months rose to 58 from 56 in the April survey.

However, 75 of respondent firms were still not increasing investment, albeit with wide variations between sectors 42 of transport and logistics firms said they had increased investment levels compared with only 19 of retail companies.

Starmer has said he hopes the prospect of political stability…