BOE/TNS May inflation expectations 3.1% vs 3.2% prior

BOE releases its latest consumer inflation expectations survey results

• Prior 3.2%
• Inflation expectations for two-years ahead 3.0% (2.9% previously)
• Inflation expectations for five-years ahead 3.8% (3.4% previously)

The headline reading (inflation expectations for one-year ahead) remains relatively high but once again this just reflects sentiment on the ground and not how actual inflationary pressures are developing. Of note, the survey shows that 49% of the public expects the BOE to raise interest rates over the next 12 months compared to the 47% in February.