Bank of England reveals 'steady' inflation expectations

The latest survey from the Bank of England has revealed that the British public think the rate of inflation will remain steady at 2.4 per cent over the coming year.

This is unchanged from the response given by the British public back in May.

It was also revealed that when people were asked what the current rate of inflation is, the average answer was 3.6 per cent, compared to a response of four per cent in the summer.

These results come following an announcement from the Office of National Statistics that last month, inflation in the UK fell to its lowest level since January 2005.

Although it was above analysts’ forecasts of 1.4 per cent, the rate of 1.6 per cent in August was lower than that expected by the central bank.

Commenting on the figures, UK economist at Capital Economics Vicky Redwood told the Guardian: ’August’s UK consumer price figures show that inflation is back on a downward trend after July’s brief pause.

’Food and utility price inflation were unsurprisingly the main drivers of the fall.’
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