Bank of England’s Latest Inflation Attitudes Survey: Numbers with a Side of Reality
The Bank of England’s newest “Inflation Attitudes Survey” just dropped, and it’s giving us a mix of hope, worry, and a dash of humour. Below is the low‑down without the jargon, just straight facts – and a few cheeky comments.
What People Think is the Current Rate of Inflation
- 4.9% – that’s what respondents claim it’s at now. It’s a bump up from the 4.8% measured last November.
How the Future Could Look
- 3.4% is the predicted inflation over the next year. That’s a lift from the 3.0% expectation back in November.
Interest Rates: Will They Keep Rising?
When asked about what could happen to money‑borrowing costs in the next twelve months, 34% of survey drivers think rates will go up – a slight jump from the 33% last November.
Economic Outlook – Will Prices Make Things Wobble?
In a big swing of opinions, 71% vs 4% is the split: 71% believe that if prices surge faster, the economy will actually get weaker, not stronger. The November numbers were 66% and 6% respectively – so it’s getting a bit more cautious.
Thoughts from the Finance Crowd
Andrew Montlake – Coreco
“Inflation nudging close to 5% means households are feeling the pinch hard.” He warns that high interest rates are added fuel to the ongoing “cost‑of‑living crisis.” Even though the economy contracted in January, a rate cut might still be miles down the road. He adds, “If prices climb faster, the economy could tighten up – and 2025 is looking like a rollercoaster.”
Emma Jones – Whenthebanksaysno.co.uk
“Inflation sits at 3%, but people think it’s far higher.” That tells us the public is wary of the cost of living. Emma says policymakers at the Bank of England need to grab this and act.
Jamie Elvin – Strive Mortgages
Jamie notes the public’s continued worry: increased inflation expectations (3.4%) and the expectation of rate hikes. The state of the economy looks uneasy, with the hope for a quick bounce‑back still shaky.
Elliott Culley – Switch Mortgage Finance
“If inflation stays below what the Bank of England predicts, a rate rise looks unlikely,” Elliot points out. He echoes that the Bank expects inflation to rise in 2025, spurred by higher national insurance contributions and utility bills. The real kicker is how much the inflation climbs.
Bottom line: The survey outlines a future that feels any bit uncertain yet, with most people expecting a steadier, not a rising, inflation curve. If the Bank stays on course, lower borrowing costs could sneak back in, but only if inflation stays tame.
