–BOE/GfK NOP Survey Shows Aug Yr Ahead Inflation Expectations At 3.3%
–BOE/NOP: Year Ahead Inflation Expectations Highest Since Aug 2008
LONDON (MNI) – Inflation expectations for the year ahead have
surged to their highest level since August 2008, rising to 3.3% in May
from the 2.5% seen in February, according to the latest Bank of
England/GfK NOP Inflation Attitudes survey.
Public perceptions of the current rate of inflation also climbed to
a median of 3.6% from the 3.3% seen in February, the survey showed.
The rise in inflation expectations will underline concerns within
the Bank of England’s Monetary Policy Committee that the recent high
level of inflation outturns is fueling a rise in inflation expectations.
How far these higher expectations can feed through into stronger
wage and price pressures, given the underlying weakness of the economy
and a looming period of fiscal austerity, remains to be seen.
The survey showed a slight fall in the percentage of the population
expecting interest rates to rise over the next 12 months, with 52%
now anticipating a rise compared with 54% in February.
The net satisfaction index – which measures how far the population
is happy with the way the BOE is setting rate policy to control
inflation – rose slightly to +29 in May from +28 in February.
Data for this survey was collected between May 13-18.
–London newsroom: 4420 7 862 7492; email: ukeditorial@marketnews.com
[TOPICS: M$B$$$,M$$BE$,MABPR$,MT$$$$]
