Increasing inflation expectations in the UK: BOE/IVOS SURKER

London (DPA -AFX) – The expectations of inflation in the UK have increased in February, the latest quarterly inflation attitudes conducted by Ipsos on behalf of the Bank of England revealed on Friday.

The expectations of inflation one year before increased to 3.4 percent in February from 3 percent in November.

The current inflation rate is estimated at 4.9 percent compared to 4.8 percent in November.

In the longer term, let’s say in five years, inflation is observed at 3.6 percent, increasing from 3.4 percent in November.

When asked about the future interest rate, 34 percent of the respondents said that interest rates will increase the following year. About 23 percent said that the rates will remain the same, while 29 percent forecast the rates that will fall in the next twelve months.