Expectations of inflation have bounced off record lows, according to survey data released by Barclays yesterday.
The general public expect inflation to be 1.6 per cent over the next year, up from a record low of 1.3 per cent three months ago.
Barclays has published its Basix inflation expectations figure since 1986.
The data was collected at the end of last month, which means the global stock market volatility sparked by China has been accounted for.
“The ongoing recovery in wages and record high household confidence may have prompted people to raise their expectations,” said Barclays economist Fabrice Montagne.
“After reaching record low levels, we welcome the stabilisation and rebound in inflation expectations It shows that even if still significantly low by historical standards, expectations are not spinning out of control.”
This morning will see the release of official inflation figures for August, with analysts anticipating a fall to either zero per cent or minus 0.1 per cent from July’s 0.1 per cent.