UK Inflation Expectations Ease Further: BoE/Ipsos Survey

UK inflation expectations slowed slightly in August, the latest quarterly Inflation Attitudes Survey conducted by Ipsos on behalf of the Bank of England revealed Friday.

The one-year ahead inflation expectations eased slightly to 2.7 percent from 2.8 percent in May.

However, in five years' time, inflation is seen at 3.2 percent, up from 3.1 percent the prior survey period.

Respondents assessed the current inflation at 5.2 percent compared to 5.5 percent in the previous survey period.

By a margin of 67 percent to 5 percent, survey respondents viewed that the economy would end up weaker, rather than stronger, if prices started to rise faster, compared to 65 percent and 6 percent respectively in May.

The percent of respondents reporting that interest rates on things such as mortgages, bank loans and savings had risen over the last twelve months decreased to 55 percent from 64 percent in May.

Further, 29 percent of survey participants expect interest rates to rise over the coming twelve months. This was down from 34 percent in May. About 22 percent said they expected rates to stay about the same over the next twelve months, down from 25 percent in the prior period.

The survey was conducted between August 2 and 6.

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