Inflation expectations for this year are steady at 2.7 per cent

INFLATION is expected to stay above the Bank of England’s two per cent target in the coming year, according to a YouGov survey released yesterday.

Expectations in March eased down slightly to a median rate of 2.7 per cent, from 2.8 per cent in February.

Predicted price pressures remain well below the mid-2011 peak of 3.9 per cent, however.

In the longer run – over the next five to ten years – respondents anticipate stubborn inflation, with the expected level staying at 3.4 per cent in March’s poll.

The consumer price index measure of inflation measured 3.4 per cent in February according to the Office for National Statistics (ONS), with the Bank of England saying that price pressure should dip to around target level this year.