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\t\tThe Bank of England has warned interest rates may be hiked due to inflation.\t<\/p>\n\t\t\tFriday 12 June 2026 1:58 pm\n\t\t\t<\/p>\n
\t\tThe Bank of England has warned interest rates may be hiked due to inflation.\t<\/p>\n
Inflation expectations hit a record high in the second quarter of the year, which could rattle Bank of England policymakers and build the case for an interest rate hike.\u00a0<\/p>\n
The Bank\u2019s joint survey with Ipsos found that, on average, households believe inflation will rise by 3.9 per cent over the next five years.\u00a0<\/p>\n
It was the highest reading for inflation expectations recorded since data collection began in early 2009.\u00a0<\/a><\/p>\n Inflation expectations for the year ahead also rose to four per cent, up from 3.2 per cent in the first quarter of the year.\u00a0<\/p>\n Britons also believe prices have jumped by around five per cent over the last year, up from a previous figure of 4.6 per cent.\u00a0<\/p>\n CPI inflation<\/a> in the year to April was 2.8 per cent and next week\u2019s reading for the 12 months to May is expected to show inflation edging towards three per cent.\u00a0<\/p>\n Economists said the survey results showed worse figures than research published by Yougov.\u00a0<\/p>\n Pantheon Macroeconomics analyst Rob Wood said there were also concerns over households\u2019 dissatisfaction with the Bank of England over a failure to keep price growth stable.\u00a0<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tReeves\u2019 savings package to have minimal impact on inflation rise<\/a><\/p>\n \u201cThe inflation expectations survey suggests that the Monetary Policy Committee was far from defeating persistent inflation before the war began, so policy will need to stay somewhat restrictive even without the latest energy price shock,\u201d Wood said.\u00a0<\/p>\n Interest rate hike possible<\/p>\n