Inflation To Hit 5 Percent Say Consumers

UK consumers are forecasting 5 percent inflation this time next year according to the most recent Lloyds TSB Barometer survey. This is the tenth time in a row that the expectation has been increased inflation.

In July the forecast was for a 4.8 percent inflation figure next year, though the latest Lloyds TSB survey has seen this go up to 5 percent now. It is perhaps unsurprising that people have this view, especially with all the huge increases in utility costs.

In contrast to the opinion of the UK consumer the Bank of England sees a very different picture. They are anticipating a rate of inflation that is less than 2 percent say Lloyds TSB.