Median expectation of UK rate of inflation over 2023 4.8%: Survey

In the bank’s quarterly survey of public attitudes to inflation, when respondents were asked about expectations of inflation in the longer term, say in five years’ time, they gave a median answer of 3.3 per cent, up from 3.1 per cent in August this year.

The median expectation of the UK rate of inflation over the coming year in a survey conducted for the Bank of England by market research firm Ipsos recently was 4.8 per cent, down from 4.9 per cent in August this year. Asked about expected inflation in the 12 months after that, respondents gave a median answer of 3.4 per cent, up from 3.2 per cent in August.

Asked to give the current rate of inflation, respondents gave a median answer of 9.2 per cent, up from 7.6 per cent in August.

Thirty-five per cent of respondents thought the inflation target was ‘about right’, up from 32 per cent in August. The proportions saying the target was ‘too high’ or ‘too low’ were 29 per cent and 17 per cent respectively, the bank said in a release.

Asked about the future path of interest rates, 74 per cent of respondents expected rates to rise over the next 12 months, down from 75 per cent in August. Eleven per cent said they expected rates to stay about the same over the next twelve months, the same proportion compared to August.

Asked what would be ‘best for the economy’—higher interest rates, lower rates or no change— a fifth thought rates should ‘go up’, compared to 30 per cent in August 2022. Thirty per cent of respondents thought that interest rates should ‘go down’ compared to 24 per cent in August. A quarter thought interest rates should ‘stay where they are’, down from 26 per cent in August.

Fibre2Fashion News Desk (DS)