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UK public inflation forecasts remain at 5-yr peak

UK public inflation forecasts remain at 5-yr peak

Mubasher: Public expectations for the path of UK inflation over the next year stood at their highest in five years, according to a survey by the Bank of England (BOE).

Britons expect inflation to average 3.2% over the year ahead, the highest reading since November 2013, the BOE’s quarterly survey conducted last February.

This came unchanged from the previous survey result conducted last November.

The percentage of the more than 4,000 survey respondents, who expect the BOE to hike interest rates, was 47%, down from 53% in November’s poll result.

Meanwhile, 26% of the respondents got no clue about the trajectory of interest rates over next 12 months.

It is worth noting that UK consumer price inflation inched up 1.9% last February, having hit two-year trough of 1.8% in January.

The BOE expected in February that inflation would likely inch up above the 2% target this year.

This came as the central bank warned that a disorderly Brexit the sterling pound could probably weaken, sending inflation to high level.