Britons’ inflation expectations for the coming year slowed in May, the latest Bank of England/Kantar Inflation Attitudes Survey showed on Friday.
Inflation for the coming year was seen at 2.4 percent, down from 2.7 percent in February. Likewise, inflation expectations for the twelve months after that eased to 1.9 percent from 2.2 percent.
The 5-year ahead inflation expectation slowed to 2.7 percent from 2.9 percent.
According to the survey, 45 percent of respondents thought the inflation target was ‘about right’, compared to 44 percent in February. The proportions saying the target was ‘too high’ or ‘too low’ were 31 percent and 10 percent, respectively.
When asked about the future path of interest rates, 37 percent said they expected rates to stay about the same over the next twelve months, compared with 35 percent in February. About 39 percent expected rates to rise over the next 12 months, up from the previous forecast of 35 percent.
The quarterly survey was conducted by Kantar on behalf of the Bank of England, between May 11 and 17.
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