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Financial News: Britons' 1-Year Ahead Inflation Expectations Remain Unchan

Britons' 1-Year Ahead Inflation Expectations Remain Unchanged

06/08/2018 - 06:48:00 (RTTNews)

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

The rate of inflation for the coming year came in at 2.9 percent, the same as projected in the previous survey period.

Respondents assessed the current rate at 3.1 percent, also unchanged from February.

Survey participants said inflation will rise to 3.6 percent in the longer-term, say in five years' time, instead of 3.4 percent projected earlier.

About 49 percent of respondents thought the inflation target was 'about right', compared to 51 percent in February, while the proportions saying the target was 'too high' or 'too low' were 21 percent and 11 percent, respectively.

When asked about the future path of interest rates, 22 percent said rates might stay about the same over the next twelve months, compared with 18 percent in February.

About 51 percent of respondents expected rates to rise over the next 12 months, down from 58 percent in February.

The survey was conducted among 2159 people between May 4 and 8.

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