Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

UK inflation expectations match nine-year high: BoE survey

Economic Indicators Dec 09, 2022 10:46
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A London bus travels past the Bank of England in London, Britain, October 10, 2022. REUTERS/Hannah McKay

LONDON (Reuters) -The British public's expectations for inflation over the next one to two years rose to their joint-highest level in nearly a decade and satisfaction with the Bank of England slid, according to a quarterly BoE survey.

Central bankers watch surveys of inflation expectations closely for signs that people and businesses expect above-target inflation to become entrenched, influencing wage-bargaining and pricing strategies - though not all officials are convinced the data offer a meaningful guide to future behaviour.

Friday's survey showed that the public's expectation for inflation in the next one to two years rose to 3.4% in November from 3.2% in August, matching a May reading which was the highest since November 2013.

British consumer price inflation hit a 41-year high of 11.1% in October, more than five times the BoE's 2% target.

Net public satisfaction with the job the BoE is doing in controlling inflation fell to -12, its lowest since the survey began in 1999, down from -7 in August.

Not all the survey measures were so negative, however.

Expectations for inflation in five years' time rose to 3.3% in November from 3.1%, but were below May's two-and-a-half year peak of 3.5% and not much above their long-run average of 3.2%.

Expectations for inflation over the year ahead declined to 4.8% from August's record-high 4.9%.

In September, Britain's government announced measures to limit future rises in household energy bills.

Some other measures of inflation expectations have shown more of a decline in expectations than the BoE survey. A survey by Citi and YouGov (LON:YOU), conducted on Nov. 22 and Nov. 23, showed inflation expectations for five to 10-years' time had fallen to 3.9% in November from a peak of 4.8% in August.

The BoE survey took place from Nov. 4 to Nov. 7, just after the BoE raised rates by three quarters of a percentage point to 3%. Next week the BoE is likely to raise rates by a further half point to 3.5%, according to a Reuters poll of economists.

UK inflation expectations match nine-year high: BoE survey
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Hussain Arif Adil Hussain Arif Adil
Hussain Arif Adil Hussain Arif Adil Dec 09, 2022 18:25
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hello
Graham Kinnear
Graham Kinnear Dec 09, 2022 12:03
Saved. See Saved Items.
This comment has already been saved in your Saved Items
B of E was well behind the curve with it's transitory inflation nonsense
Al Mighty
Al Mighty Dec 09, 2022 10:10
Saved. See Saved Items.
This comment has already been saved in your Saved Items
But are we sure that the numbers are correct THIS TIME?!
Garry Cooke
Garry Cooke Dec 09, 2022 10:10
Saved. See Saved Items.
This comment has already been saved in your Saved Items
After they have been thoroughly massaged…Yes..!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email