UK inflation expectations for one-year ahead edge higher, BoE says

Inflation expectations among the British public edged higher over the last quarter, according to the results of the latest survey carried out by TNS for the Bank of England.

When asked to predict where inflation would be in one year's time, Britons answered 3.0%, as opposed to 2.9% in May.

However, expectations for the rate of gains in consumer prices over the 12 months afterwards and over a five-year horizon were unchanged at 2.9% and 3.6%, respectively.

Much like officials at Bank, 58% of respondents said they expected inflation to rise over the next 12 months, versus 51% in May.

Interestingly, 35.0% of those surveyed now said that interest rates should remain where they were, up from the 32.0% who had said the same the last time around.

Yet the proportion of those who believed that the inflation target "was about right" was unchanged at 49.0%.

Meanwhile, the net balance of those who said they were satisfied with th way the BoE was doing its job rose from 25.0% to 28.0%.