London. Half of Britons say that the UK’s departure from the European Union has pushed up their expectations for price growth, a Bank of England survey showed Friday.
Inflation expectations for the coming year stood at 3.3 per cent in August, the BoE said, the highest since 2013 and up from 3.1 per cent in May. Consumers are slightly more optimistic about the longer term, with respondents saying they expect inflation of 3.1 per cent in five-years’ time, down from 3.8 per cent in May.
A further fall in the pound as well as new trade barriers could push price growth above the BoE’s 2 per cent target once the UK quits the EU. Still, 10 per cent of respondents to the survey said Brexit has lowered their expectations for price growth.