LONDON (Reuters) – The British public’s expectations for the level of inflation over the coming year remained at their highest in five years, while the proportion expecting interest rates to rise has fallen, Bank of England data showed on Monday.
British people surveyed in February expect inflation to average 3.2 percent over the next 12 months, unchanged from November’s survey which was the highest reading since November 2013, according to the quarterly BoE survey.
Some 47 percent of the more than 4,000 people surveyed expect the Bank of England to raise interest rates over the next 12 months, down from 53 percent in November.
British consumer price inflation edged up to 1.9 percent in February after touching a two-year low of 1.8 percent in January, and the BoE forecast in February that inflation is likely to rise slightly above its 2 percent target this year.
However, the BoE has warned that a disruptive, no-deal Brexit would likely weaken sterling and push inflation sharply higher.