(Alliance News) - UK consumers expect inflation to stay firmly above the Bank of England's 2.0% target over the coming years, survey results showed on Friday.
The inflation rate will sit at 3.0% in five years time, according to a median response from August's Bank of England/Kantar inflation attitudes survey. In the May survey, the median prediction was 2.7%.
Consumers were asked to give what they thought the current rate of inflation is, with the median response being 2.9%. In May's survey, the median response was 2.5%.
The survey was conducted between August 10 and 16, so before official data on Wednesday revealed UK inflation accelerated last month.
The UK annual inflation rate jumped to 3.2% in August from 2.0% in July, the Office for National Statistics said.
On UK interest rates, 31% of respondents to the BoE survey said they expect them to remain at historic lows over the next 12 months. However, 43% expect a hike, up from 39% in May's survey.
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.