The latest Bank of England Inflation Attitudes Survey reveals rising inflation perceptions among respondents, now at 4.9%, and expectations for future inflation increased to 3.4%. A growing number anticipate interest rate hikes, with 34% expecting rates to rise in the next year. The survey results indicate a notable shift in sentiment regarding economic stability, with 71% believing the economy will weaken if prices rise further. Financial experts emphasize the ongoing cost of living crisis and the implications for policymakers at the Bank of England as 2025 approaches a challenging economic landscape.
That people believe inflation is almost 5% shows the immense pressure household finances are under. The cost of living crisis is ongoing and higher interest rates are adding fuel to the fire.
The fact that people believe it is far higher says a lot about sentiment in the economy. The cost of living crisis continues for many and policymakers at the Bank of England should take note.
The public remains wary of inflation, with expectations rising to 3.4% despite the broader downward trend. This suggests many still feel the squeeze of higher prices.
A growing number anticipate interest rate hikes, highlighting uncertainty over when borrowing costs will ease. The data signals a cautious economic outlook.
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