Britons' Inflation Expectations Slow In November
Britons’ inflation expectations for the coming year slowed marginally in November, the quarterly Bank of England/Kantar Inflation Attitudes Survey showed on Friday.
The one-year ahead inflation expectations fell to 2.7 percent from 2.8 percent in August. Likewise, the expected inflation for the twelve months after that slowed to 2.1 percent from 2.2 percent.
Inflation in the five years’ time is seen at 2.9 percent compared to 2.8 percent projected in August.
Further, 40 percent of survey participants thought the inflation target was ‘about right’, down from 42 percent in August. The proportions saying the target was ‘too high’ or ‘too low’ were 29 percent and 11 percent, respectively.
When asked about the future path of interest rates, 34 percent said they expected rates to stay about the same over the next twelve months, compared with 33 percent in August. About 33 percent expected rates to rise over the next 12 months, up from 31 percent in August.
The quarterly survey was conducted between November 10 and 16 by Kanta, on behalf of BoE.
The material has been provided by InstaForex Company – www.instaforex.com