Bank of England: UK Consumer Inflation Expectations Hit 5-Year High
UK inflation expectations for the coming year rose to their highest level in five years. The Bank of England’s data, based on a survey conducted by polling company TNS between November 2 and 6, showed, that median expectations for inflation over the coming year rose to 3.2% from 3.0% in August. That was the highest level since November 2013, when the year-ahead inflation was projected at 3.6%.
It was also reported, that expectations for inflation in two years' time fell to 2.8% from 2.9% in August. Inflation in five years' time was at 3.5%, compared with 3.6% three months earlier.
The Bank of England inflation target is at 2%. In October, UK inflation was 2.4%. Consumer prices hit a peak of 3.1% in November 2017, pushed up by the fall in the value of the pound after the Brexit vote in 2016.
Britain is preparing to leave the EU on March 29, 2019. The Bank of England has warned that a no-deal Brexit would cause a severe recession in the UK, the kind not even seen during the global financial crisis a decade ago. The UK central bank projects that inflation could hit 6.5% as the pound dives in a no-deal or disorderly Brexit.