Britons' 1-Year Ahead Inflation Expectations Steady At 2.8%



Britons' 1-Year Ahead Inflation Expectations Steady At 2.8%

Britons' one-year ahead inflation expectations remained unchanged in August, according to a quarterly Inflation Attitudes Survey from the Bank of England and TNS.

The rate of inflation over the coming year is expected to be 2.8 percent, unchanged since May survey.

Respondents again assessed the current inflation rate at 2.8 percent.

Inflation expectations for the longer term, say in five years' time, rose slightly to 3.4 percent from 3.3 percent in May.

By a margin of 53 percent to 7 percent, survey respondents believed that the economy would end up weaker rather than stronger if prices started to rise faster, compared with 50 percent to 9 percent in May.

About 32 percent of respondents said interest rates might stay about the same over the next twelve months, compared with 31 percent in May. At the same time, 42 percent expected rates to rise over the next 12 months, unchanged since May.

The survey was conducted between August 4 and 8.

SOURCE



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