–BOE: Aug Median Yr Ahead Infl Expectations 4.2% Vs 3.9% May
–BOE: Aug Longer Term Infl Expectations 3.5% vs 3.3% in May
–BOE: Aug 2yr Ahead Infl. Expectations 3.5% vs 3.2% in May
–BOE/GFK: Public Saw Current Inflation 4.8% Aug VS 4.5% May
–BOE/NOP: Year Ahead Inflation Expectations Highest Since Aug 2008
LONDON (MNI) – Inflation expectations have risen to their highest
levels since August 2008, according to the latest Bank of England GfK
NOP survey of inflation attitudes in the UK.
For the year ahead, expectations rose to over 4% in August from
3.9% in May
Public perceptions of the current rate of inflation also climbed to
a median of 4.8% from the 4.5% seen in May, the survey showed.
Longer-term and the two-year ahead expectations also rose significantly.
The rise in inflation expectations caused cable to hit session
highs despite a weaker-than-expected retail sales number for last month.
However, the BOE Monetary Policy Committee may take the surge in
expectations with a pinch of salt.
The committee seems convinced that inflation will fall back as
growth slows sharply. In addition, there is little sign of emerging wage
pressures.
In the survey, respondents were asked to assess the way the Bank of
England is ‘doing its job to set interest rates to control inflation’.
The net satisfaction balance – the proportion satisfied minus the
proportion dissatisfied – was +16%, compared with +22% in May.
GfK NOP interviewed a quota sample of 2,054 people aged 16 and over
in 175 randomly selected output areas throughout the UK between 18 and
23 August 2011. The raw data were weighted to match the demographic
profile of the UK as a whole.
–London newsroom: 4420 7 862 7492; email: ukeditorial@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]
