March 13 (Reuters) – The British public’s expectations for inflation in the long term stayed stubbornly high last month even before the U.S.-Israeli war on Iran sent energy prices soaring, according to a Bank of England survey published on Friday.
The BoE’s quarterly inflation attitudes survey showed the median expectation for inflation in five years’ time was 3.7% in February, the same as in November.
That compares with 3.3% in February 2022, when Russia’s invasion of Ukraine sparked the last energy price shock.
While the public are poor predictors of inflation, the BoE monitors their expectations carefully for signs that price pressures are becoming permanently embedded in the mindset of the public.
(Reporting by Andy Bruce; editing by Suban Abdulla)
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