I have reviewed the Latest Bank of England survey opinion on inflation, which has just been published. The results are, to be kind, quite bizarre.
Most people are rightly aware that inflation is above 5%, but oddly enough, a third think it has been below that:
When asked how inflation will change, people are hopelessly wrong in the short and medium term:
Almost without exception, they think that high price increases (which is what inflation is) are here to stay. This totally contradicts the data from the Report of the Office for Budgetary Responsibility on the economy this week:
They are sure that inflation is falling. And in 2024 they believe it could be heading to zero.
The same goes for the Bank of England. This is from the latest report of the Monetary Policy Committee:
Inflation is likely to be very low: less than 1% in 2024, and deflation is also possible. What dies means that prices will fall. But it does mean they will stop rising.
What the Bank of England needs to ask is why people’s inflation expectations are so far fetched in that case, because they obviously are.
So, a quick poll:
Leave a Reply