UK Inflation Expectations Fall to Lowest Since BOE Hikes Began
- Survey suggests BOE is keeping price expectations anchored
- Findings come as Conservative MP urges end of BOE independence
A shopper in Welling, greater London.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
UK inflation expectations slipped to the lowest level since summer 2021, before the Bank of England embarked on an aggressive interest-rate hiking cycle to contain prices.
Households questioned in February expected prices to rise 3% over the next 12 months, down from 3.3% in November, according to the BOE’s quarterly Inflation Attitudes Survey. It was the lowest since August 2021 shortly before the central bank started on 14 back-to-back rate rises to tackle high inflation.