Inflation Expectations Rise According to BoE and Ipsos Survey

A recent survey conducted by the Bank of England (BoE) and Ipsos has revealed that the public in the United Kingdom anticipates inflation to reach 3% over the next 12 months, marking an increase from the 2.7% predicted in the previous survey conducted in August.

Looking further ahead, the survey suggests that inflation is expected to settle at 2.8% by 2026, up from the 2.6% forecasted in August. When queried about the current inflation rate, respondents provided a median estimate of 4.8%, which, although down from 5.2% in August, remains significantly higher than the actual 2.3% measured in October.

Interest Rate Perceptions and Expectations

Interestingly, 45% of respondents believed that interest rates had grown over the past year, while 25% thought they had fallen. In terms of future expectations, 33% anticipate further rises in interest rates over the next year, while 22% expect rates to remain stable. The BoE maintained steady interest rates throughout the first half of the year before implementing cuts in August and November.