UK public’s medium-term inflation expectations edge up: BoE

The British public’s expectations for inflation over the medium term edged up last month – a source of concern for many BoE policymakers – although expectations for the year ahead dipped, a quarterly central bank survey showed on Friday.

The public’s expectation for inflation in the next one to two years rose to 3.4% in November from 3.2% in August, matching a May reading which was the highest since November 2013.

Expectations for inflation over the coming year time dropped to 4.8% from 4.9% in August, while those for five years’ time rose to 3.3% in November from 3.1%.