U.K. Consumer Inflation Expectations Jump to Highest Since 2014
- Households see consumer price growth of 2.8% over next year
- More people now forecast a BOE rate hike within a year
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U.K. households expect a faster inflation pickup in the next year than previously thought and have become more convinced that the Bank of England will have to raise interest rates.
Consumers expect price growth to average 2.8 percent in the next 12 months, the most since August 2014, the BOE said today as it published the results of its November Inflation Attitudes Survey. That’s up from 2.2 percent in August. The increase of 0.6 percentage point is the biggest in more than six years.