According to a survey conducted by the Bank of England (BoE) on Friday, the British public's expectations for inflation in the next 12 months have moderated. The survey also revealed that the

net satisfaction with the central bank has reached its lowest level since records began in 1999.

The BoE's quarterly inflation attitudes survey indicated that expectations for inflation in the coming year decreased to 3.5% in May, down from 3.9% in February. Meanwhile, expectations for inflation five years from now remained steady at 3.0%.

It is worth noting that the survey was conducted in mid-May, before recent inflation and jobs data led to heightened expectations of more BoE interest rate hikes in financial markets. These expectations have had a significant impact on mortgage costs.

The BoE closely monitors inflation expectations, and recent surveys among the public and businesses have shown a slight cooling in expectations in recent months. However, expectations remain above their long-term average.

The survey also revealed that the net satisfaction of the public with the BoE's management of inflation reached a new record low of -13%, compared to the previous -4%.

Although consumer price inflation dropped to 8.7% in April from 10.1% in March, it remained one of the highest rates among major advanced economies, alongside Italy.

The survey, conducted by Ipsos polling firm, took place from May 12 to May 16, providing insights into the British public's outlook on inflation and their perception of the BoE's performance. Photo by Mtaylor848, Wikimedia commons.