The BoE Inflation Attitudes Survey showed the public’s five year inflation expectation jumped sharply to 3.8% in May, hitting the highest level in more than a decade.
Looking at the details:
- Current inflation rate is seen at 3.1% (median), up from February’s 2.9%.
- One year inflation expectation is at 3.0%, up from 2.9%.
- 5-year inflation expectation is at 3.8%, up from 3.4%.
On interest rates:
- 18% said rates should go up, up from 17%.
- 19% said rates should go down, up from 17%.
- 35% said no change, down from 37%.
