Consumers in the UK surveyed in November before the government budget expected consumer price inflation to slow in 2026, the Bank of England said Friday.
In its inflation attitudes survey release, the BoE said median expectations of the rate of consumer price index inflation for the coming year were 3.5%, down from 3.6% anticipated when asked in August.
When asked to give the current rate of UK price inflation, respondents gave a median answer of 4.7%, down from 4.8% in August. The actual rate was 3.6% in October, down from 3.8% in September. Notably, the inflation rate for food and non-alcoholic beverages had increased to 4.9% in October from 4.5% in September.
The Office for National Statistics will release November CPI inflation figures on Wednesday next week.
When asked about expectations of inflation in the longer term such as in five years’ time, respondents gave a median answer of about 3.7%, down from 3.8% in August.
Notably, 74% of survey respondents expected the UK economy would end up weaker if prices started to rise faster, compared to just 4% who would expect the economy to strengthen in such a scenario. This compares to 69% and 6% respectively in August.
Further, respondents were asked to assess the way the Bank of England is ‘doing its job to set interest rates to control inflation’. The net satisfaction balance fell to minus 1% from plus 2% in August.
Ipsos interviewed a quota sample of people aged 16 to 75 across the UK, with the sample surveyed between November 7 and 10.
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