Britons are anticipating big price rises over the coming year, new data from the Bank of England out today shows.
Members of the public quizzed in February expect inflation to rise 2.9 per cent over the next year, up from a 2.8 per cent estimate in the Bank’s previous survey in November.
The 2.9 per cent figure is the highest recorded by the Bank since November 2013.
Asked to estimate the rate of inflation over the previous 12 months, respondents’ median answer was 2.7 per cent, up from 2.3 per cent in November.
And inflation expectations were also up in the longer term, with those surveyed expecting a rate of 3.2 per cent over the next five years, compared with 3.1 per cent in November.
On interest rates, 22 per cent of respondents thought they had fallen over the past 12 months, compared with 29 per cent in November.
Some 21 per cent thought they had risen in the past year, compared with 20 per cent in November.
Four in 10 (42 per cent) expect rates to rise in the next 12 months, up from 41 per cent last time, while 28 per cent expected them to remain about the same.