Britons See Inflation Hitting Double BOE Target, Survey Finds

Britons See Inflation Hitting Double BOE Target, Survey Finds

(Bloomberg) — UK households expect inflation to accelerate sharply in the coming year while businesses are turning more pessimistic, according to two Bank of England surveys, sharpening the trade-off posed by the Iran war.

Inflation expectations at record high in alarm for interest rates

Inflation expectations hit a record high in the second quarter of the year, which could rattle Bank of England policymakers and build the case for an interest rate hike.  The Bank’s joint survey with Ipsos found that, on average, households believe inflation will rise by 3.9 per cent over the next five years.  It was the highest reading for inflation expectations recorded since data collection began in early 2009.  Inflation expectations for the…

Bank of England/Ipsos Inflation Attitudes Survey