This news release describes the results of the Bank of England’s latest quarterly survey of public attitudes to inflation, undertaken between 8th and 13th of May 2014.
GfK NOP interviewed a quota sample of 1986 people aged 16 and over in 175 randomly selected output areas throughout the United Kingdom between 8 and 13 May 2014. The raw data were weighted to match the demographic profile of the UK as a whole.
Highlights from the survey
- Question 1: Asked to give the current rate of inflation, respondents gave a median answer of 2.9%, compared with 3.5% in February.
- Question 2a: Median expectations of the rate of inflation over the coming year were 2.6%, compared with 2.8% in February.
- Question 2b: Asked about expected inflation in the twelve months after that, respondents gave a median answer of 2.5%, compared with 2.8% in February.
- Question 2c: Asked about expectations of inflation in the longer term, say in five year’s time, respondents gave a median answer of 2.9%, compared with 3.2% in February.
- Question 3: By a margin of 54% to 10%, survey respondents believed that the economy would end up weaker rather than stronger if prices started to rise faster, compared with 57% to 8% in February.
- Question 4: 53% of respondents thought the inflation target was ‘about right’, compared with 48% in February, while the proportions saying the target was ‘too high’ or ‘too low’ were 19% and 12% respectively.
- Question 5: 12% of respondents thought that interest rates had fallen over the past 12 months, compared with 13% in February, while 21% of respondents said that interest rates had risen over the past 12 months, compared with 23% in February.
- Question 6: When asked about the future path of interest rates, 36% said rates might stay about the same over the next twelve months, down from 37% in February. 42% of respondents expected rates to rise over the next 12 months, up from 40% in February.
- Question 7: Asked what would be ‘best for the economy’ – higher interest rates, lower rates or no change – 20% thought rates should ‘go up’, compared with 16% in February. 15% of respondents thought that interest rates should ‘go down’, compared with 16% in February. 38% thought interest rates should ‘stay where they are’, compared to 40% in February.
- Question 8: When asked what would be ‘best for you personally’, 25% of respondents said interest rates should ‘go up’, compared with 21% in February. 22% of respondents said it would be better for them if interest rates were to ‘go down’, compared with 23% in February.
- Question 14: Respondents were asked to assess the way the Bank of England is ‘doing its job to set interest rates to control inflation’. The net satisfaction balance – the proportion satisfied minus the proportion dissatisfied – was +31%, compared with +30% in February.