Bank of England survey: Inflation expectations for 2025 rise to 3% and satisfaction with the bank's performance decreases.

The results of the third-quarter survey, released by the Bank of England on Friday, showed a decrease in inflation expectations in the UK over the next 12 months to 2.7%, down from the previous survey in May, which indicated expectations for inflation stability at 2.8%.

The main results of the Bank of England survey were:

• Current inflation rate: The average current inflation expectations dropped to 4.8%, down from 5.2% in August 2024.
• Inflation expectations for next year: Inflation is expected to accelerate to 3% during the next year, 2025, up from 2.7% in the August 2024 survey.
• Inflation expectations for the following year: Expectations for inflation in the following year, 2026, rose to 2.8%, up from 2.6% in the August 2024 survey.
• Long-term inflation expectations (5 years): The expectations for average inflation over the next five years increased to 3.4%, up from 3.2% in August 2024.
• Economic expectations with rising inflation: A large majority (66%) believed that the economy would weaken if inflation increased, a slight drop from 67% in August 2024.
• Bank of England performance: Satisfaction with the Bank of England's management of interest rates to control inflation decreased to -1%, down from 4% in August 2024.