March 13 (Reuters) - The British public's expectations for inflation in the long term stayed stubbornly high last month even before the U.S.-Israeli war on Iran sent energy prices soaring, according
UK Inflation Expectations Remained High Even Before Iran-Driven Energy Shock
Analysis of UK Inflation Attitudes and Recent Economic Shocks
Persistent Long-Term Inflation Expectations
March 13 (Reuters) - The British public's expectations for inflation in the long term stayed stubbornly high last month even before the U.S.-Israeli war on Iran sent energy prices soaring, according to a Bank of England survey published on Friday.
Bank of England Survey Findings
The BoE's quarterly inflation attitudes survey showed the median expectation for inflation in five years' time was 3.7% in February, the same as in November.
Comparison with Previous Energy Shocks
That compares with 3.3% in February 2022, when Russia's invasion of Ukraine sparked the last energy price shock.
Implications for Monetary Policy
While the public are poor predictors of inflation, the BoE monitors their expectations carefully for signs that price pressures are becoming permanently embedded in the mindset of the public.
(Reporting by Andy Bruce; editing by Suban Abdulla)
