Inflation Expectations Unchanged, Satisfaction with Bank of England Falls

The latest quarterly Bank of England/GfK NOP Inflation Attitudes Survey, undertaken in August, was published today. The results were:

• Current inflation rate: Respondents’ median answer 3.8%, compared with 4.0% in May 2009.
• Respondents’ median expectations of the rate of inflation over the coming year were 2.4%, the same as in May.
• 59% of respondents believed that the economy would end up weaker than stronger if prices started to rise faster, 8% thought stronger. In May the percentages were 63% and 9% respectively.
• 51% of respondents thought the inflation target was ‘about right’, down from 52% in May. 21% thought it was ‘too high’ and 14% thought it was ‘too low’.
• 54% of respondents thought that interest rates had fallen over the past 12 months, compared with 63% in May. 22% said interest rates had risen over the past 12 months, down from 17% in May.
• 48% of respondents expected rates to rise over the next 12 months, up from 44% in May. 8% expected interest rates to fall over the next 12 months, compared with 10% in May.
• Asked what would be ‘best for the economy’, 23% thought rates should ‘go up’, compared with 25% in May. 19% thought that interest rates should ‘go down’, up from 17% in May. 32% thought interest rates should ‘stay where they are’, compared with 34% in May.
• When asked what would be ‘best for you personally’, 25% of respondents said interest rates should ‘go up’, down from 29% in May. 27% said it would be better for them if interest rates were to ‘go down’, up from 25% in May.
• The net satisfaction index, the proportion satisfied that the Bank of England is ‘doing its job to set interest rates to control inflation’ minus the proportion dissatisfied, was 15%, down from 17% in May.

News Release: Bank of England/GfK NOP Inflation Attitudes Survey (17 September 2009).

Note: GfK NOP interviewed a quota sample of 2,075 people aged 15 and over in 175 randomly-selected enumeration districts throughout the United Kingdom between 13-18 August 2009. The raw data were weighted to match the demographic profile of the UK as a whole.

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