Two thirds of people think inflation will rise in next 12m

Graham_Devon

Nearly two-thirds of people expect the rate of inflation to rise in the next 12 months, a Bank of England survey has indicated.
The poll, conducted in February, showed that 62% of those asked were expecting a rise, up from 52% in November.

Crucially, fewer than one in 10 said they would demand higher wages to try to offset increasing prices.

The Bank of England's latest inflation attitudes survey showed that 66% thought interest rates should rise to tackle inflation, if the rate increased

Bit more pressure to raise rates then.

http://www.bbc.co.uk/news/business-12770436

nearlynew

Nearly three thirds of people don't even realise what inflation is.

fraser

they think that because the daily fail said it will...

markharding557

With rising commodities it is a certainty.

Loughton_Monkey

For 90% of Joe Public, substitute the following two questions.

1. Do you think inflation will rise in the next 12 months?

2. Do you think prices will rise in the next 12 months?

Ask question 1, and they will answer question 2, because they know no different.

Generali

This is a regular (monthly/quarterly?) BoE Inflation Attitudes Survey. The important figure to them when it comes to setting rates in this survey is the 'Will you be trying for a pay rise to counter inflation?' (or words to that effect). 10% have said yes so this survey will create little or no upward pressure on interest rates. If that 10% starts to rise quickly then rates will almost certainly rise quickly.

Most of the MPC are the good new fashioned Monetarist Keynsians so their actions should be pretty predictable.

ManAtHome

Interesting that 50% of the survey/population will apparently just TUT as they become progressively more and more skint (see various 'stuff going up' threads on here for a slightly different slant).

Maybe they just surveyed the MPC - don't think I'd asking for a payrise or be too worried about inlflation if I had a £100k+ RPI-linked pension on the very-near horizon.

Heyman_2

Generali wrote: »

The important figure to them when it comes to setting rates in this survey is the 'Will you be trying for a pay rise to counter inflation?' (or words to that effect). 10% have said yes so this survey will create little or no upward pressure on interest rates.

Agree with this, and hence think that this -

Graham_Devon wrote: »

Bit more pressure to raise rates then.

- is nonsense!

Interesting view from Robert Peston's dad, Lord Peston -

Peer 'embarassed' by bank economists
http://news.bbc.co.uk/democracylive/hi/house_of_commons/newsid_9426000/9426681.stm

'He told peers the problem with the MPC was that all they could do at any time was "raise the interest rate which can only influence external-generated price inflation by strengthening sterling, which would shift demand away to overseas markets from British markets, which would undermine the government's strategy totally".'

Sibley

I've got a feeling they might cut rates to 0%.
Now that would really help everyone.:)

ILW

Trouble with inflation is that when it is expected to rise, it gives suppliers and retailers an excuse to put prices up and that is now happening. Part of the problem arises when people start to believe that the BoE are incapable of doing anything about it.

Graham_Devon

Heyman wrote: »

Agree with this, and hence think that this -



- is nonsense!

.'

The BOE are already facing pressure from the markets. This just adds to the pressure, as if the ordinary public expect inflation to rise, the press will, rightly, state everyone expected it to rise, and the BOE did nothing.

They have been wrong long enough.

The deflationists have been wrong long enough.