The results of the Bank of England's latest quarterly survey of public attitudes to inflation showed that median expectations of the rate of inflation over the coming year rose to 3.4% from 3.0% in November 2024, when the previous survey was conducted.
Meanwhile, asked about expected inflation in the 12 months after that, respondents gave a median answer of 3.2%, up from 2.8% in November 2024. Five-year inflation expectations of consumers rose by 0.2% to 3.6%. Asked to give the current rate of inflation, respondents gave a median answer of 4.9%, up from 4.8% in November 2024.
By a margin of 71% to 4%, survey respondents believed that the economy would end up weaker, rather than stronger, if prices started to rise faster, compared to 66% and 6% respectively in November 2024.
The survey also found that 39% of respondents thought the inflation target was ‘about right’, down from 42% in November 2024. The proportions saying the target was ‘too high’ or ‘too low’ were 33% and 11% respectively.
As for the prospects of the Bank of England's monetary policy, 34% of respondents expected rates to rise over the next 12 months, up from 33% in November 2024. 23% said they expected rates to stay about the same over the next twelve months, up from 22% in November 2024, and 29% said they expected rates to fall over the next 12 months, down from 34% in November 2024.