Respondents to the latest BOE quarterly inflation survey saw current inflation in the UK in November at a median level of 4.9% compared to a series peak of 5.4% in August, the fall to 4.9% the largest recorded in the history of the study.
The fall in expected inflation was also the sharpest seen in the history of the study. According to the survey, respondents in November expect inflation in 2009 to come in at a median level of 2.8%, down from a series high of 4.4% in August.
Nearly half the respondents (49%) believe the BOE’s inflation target of 2% is “about right”, 19% view it “too high” and 18% “too low.”
