THE UK public expects annual consumer prices index inflation to be 2.2 per cent over the coming year, having forecast a rate of 1.9 per cent on a 12-month view back in February, a survey has shown.
The findings of the survey, published by the Bank of England and pollster GfK NOP and conducted between May 8 and 13, were described as "relatively reassuring" by one senior economist.
The 2.2 per cent projection of the annual UK consumer prices index (CPI) inflation rate over the coming 12 months is the median expectation among those surveyed.
Asked about expected inflation in the 12 months after that, respondents gave a median answer of 2.3 per cent, compared with 2.1 per cent in February.
On the question of where the annual inflation rate would be in five years' time, the median answer was 2.8 per cent, unchanged from February.
Howard Archer, chief UK economist at consultancy IHS Global Insight, said: "This is a relatively reassuring survey for the Bank of England.
"The fact that inflation expectations rose modestly in May over a one-year and two-year horizon and stabilised on a five-year horizon - and the public do not expect deflation - reinforces belief that there is very little likelihood of consumers in the UK delaying purchases in anticipation that prices will fall."
Figures published by the Office for National Statistics last month showed that the UK recorded annual deflation of 0.1 per cent on the CPI measure in April.
The ONS said that, based on comparable historic estimates, the last time the UK saw consumer price deflation was in the year to March 1960.
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