UK Inflation Expectations Soften In May

(RTTNews) - Britons' short-term inflation expectations softened in May, the latest quarterly Inflation Attitudes Survey conducted by Ipsos on behalf of the Bank of England revealed Friday.

The one-year ahead inflation expectations fell to 3.2 percent from 3.4 percent estimated in February.

Respondents assessed the current inflation at 4.7 percent, down from 4.9 percent in February.

In five years' time, respondents expect inflation to be 3.2 percent, unchanged from the estimate released in February.

By a margin of 67 percent to 5 percent, respondents' assessed that the economy would end up weaker, rather than stronger, if prices started to rise faster, compared to 71 percent and 4 percent respectively in February.

The survey showed that 41 percent of respondents said the inflation target was 'about right', compared to 39 percent in February. The proportions saying the target was 'too high' or 'too low' were 33 percent and 10 percent respectively.

Regarding the future path of interest rates, the survey revealed that 33 percent expected rates to rise over the coming year and 21 percent expected the rates to stay about the same over the next twelve months. About 34 percent said rates will fall over the next twelve months.