Bank of England Survey Shows February Inflation Expectations Decline

LootboxPhobia · 2026-03-13T12:41:40+00:00

According to a Bank of England survey, UK inflation expectations for February have fallen to 3.2%. The public's median view of the current inflation rate is 4.6%, with expectations for the coming year also at 3.2%. Views on interest rates have shifted, with 32% believing rates will rise and 35% believing they will fall. Overall sentiment on inflation targets has become more optimistic, with 39% viewing it as moderate. The survey shows that economic prospects influence respondents' confidence in interest rates.

LootboxPhobia

2026-03-13 12:41:40

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Investing.com - According to a survey released by the Bank of England on Friday, UK inflation expectations for February have decreased, with the public expecting a 3.2% increase in prices over the next year.

The Bank of England/Ipsos Inflation Attitudes Survey shows that the median inflation expectation for the next 12 months has fallen to 3.2%, down from 3.5% in November 2025. Ipsos conducted the survey from February 6 to 11 and February 20 to 24, sampling people aged 16-75 across the UK.

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When asked about the current inflation rate, respondents gave a median answer of 4.6%, down from 4.7% in November 2025. For the 12 months after that, the median expectation was 3.2%, slightly lower than 3.3% in November 2025.

Long-term inflation expectations remain unchanged, with respondents giving a median estimate of 3.7% for inflation five years from now, consistent with November 2025.

Public opinions on interest rates have shifted significantly. 32% of respondents said that mortgage, bank loan, and savings interest rates have increased over the past 12 months, down from 38% in November 2025. Meanwhile, 35% believe rates have decreased, up from 26% in November 2025.

Looking ahead, 30% of respondents expect interest rates to rise over the next 12 months, down from 38% in November 2025. 26% think rates will stay roughly the same, up from 24%, while 29% expect rates to fall, slightly higher than 25% in November 2025.

When asked what is most beneficial for the economy, 11% believe interest rates should rise, down from 13% in November 2025. 35% think rates should fall, compared to 36% previously, and 27% believe rates should remain unchanged, consistent with November 2025.

On a personal level, 27% of respondents said that rising interest rates would be more beneficial to them, slightly higher than 26% in November 2025. 30% said that falling rates would benefit them more, unchanged from November 2025.

The survey shows that 39% of respondents believe the inflation target is appropriate, up from 36% in November 2025. The proportions who think the target is too high or too low are 34% and 10%, respectively.

Among respondents, 72% believe that if prices start accelerating, the economy will weaken rather than strengthen, with only 4% holding the opposite view—unchanged from 74% and 4% in November 2025.

The Bank of England’s net satisfaction balance for setting interest rates to control inflation is 2%, up from -1% in November 2025. The net satisfaction balance is calculated as the percentage of satisfied respondents minus the percentage of dissatisfied respondents.

Since May 2020, this survey has been conducted online, marking a methodological shift from previous face-to-face interviews.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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