The UK public’s expectations for future inflation rose to a record high and so did dissatisfaction with the Bank of England’s handling of rising prices.
Ahead of the rate-setting meeting next week, a quarterly survey carried out for the Bank found that people see 4.9% inflation for the year ahead, up from 4.6% in survey in May and the highest level in the more than 20-year history of the survey.
Expectations for two years ahead, however, dropped to 3.2% from 3.4%, which had been the highest two-year expectations figure recorded since 2013.
Expectations for inflation in five years’ time fell to 3.1% from 3.5%.
One in three people surveyed were unhappy with how the BoE was performing when asked how it was “doing its job to set interest rates to control inflation, while a quarter of people said they were satisfied.
This was the lowest level of net satisfaction since the survey started in 1999.
Official figures this week showed inflation as measured by the consumer price index receded to 9.9% last month from 10.1% in July, though economists expected CPI to rebound to a peak in October before declining in the following months.
Meanwhile, markets expect the BoE's monetary policy committee will raise rates by 0.5 to 2.25% or 0.75 percentage points to 2.5%, the latter of which would be the Bank's largest ever rise in interest rates.
The survey was conducted by Ipsos.