LONDON (Reuters) -The British public’s expectations for inflation in the coming 12 months cooled in May, according to a Bank of England survey on Friday that also showed net satisfaction with the central bank hit its lowest level since records began in 1999.
The BoE’s quarterly inflation attitudes survey showed expectations for inflation in the coming 12 months fell to 3.5% from 3.9% in February.
For inflation in five years’ time, expectations were steady at 3.0%.
The survey was conducted in mid-May, before recent inflation and jobs data sent expectations in financial markets for more BoE interest rate hikes sharply higher – with a big knock-on effect in mortgage costs.
The BoE is watching gauges of inflation expectations closely. Recent surveys of the public and businesses suggest inflation expectations have cooled in recent months, but remain above their long-run average.
Friday’s survey showed the public’s net satisfaction with how well the BoE is controlling inflation fell to a new record low of -13%, from -4% previously.
Consumer price inflation dropped in April to 8.7% from 10.1% in March, but it was still the joint-highest rate among major advanced economies, alongside Italy.
The survey, conducted by polling firm Ipsos, was conducted between May 12 and May 16.
(Reporting by Andy Bruce; editing by David Milliken)
