The British public’s expectations for inflation in the long run rose in February to their highest level in more than five years, according to a Bank of England survey on Friday that is likely to underscore its cautious approach to cutting interest rates.
“Expectations for inflation in five years’ time or longer rose to 3.6 per cent in February from 3.4 per cent in the previous survey, conducted in November,” the BoE said. It marked the highest reading since November 2019.
The BoE reported a jump in year-ahead expectations, to 3.4 per cent from 3.0 per cent – the highest reading since August 2023.