PEOPLE in countries throughout the world expect inflation to rise again in both the short and medium term, according to an economic survey released yesterday.
In the UK inflation is expected to move further away from the two per cent target to reach 2.8 per cent in a year’s time, the survey from M&G and YouGov showed.
The consumer price index currently stands at 2.2 per cent, only slightly above target.
But Brits appear the have lost some faith in the Bank of England’s ability, or desire, to rein in prices, believing that inflation in five years’ time will be around three per cent.
And despite subdued inflationary pressures across many economies of late, global respondents expect prices to rise at a quickening pace.
In Europe as a whole, people in all countries except Switzerland believe that inflation will be equal to or higher than the European Central Bank’s two per cent target in both one year’s time and five years’ time.
Meanwhile in Asia, the survey revealed inflation expectations of five per cent a year ahead in Hong Kong, while people in Singapore believe inflation will be at five per cent at the five-year horizon.