Lloyds survey shows peoples views on inflation
26 August 2008
The latest Consumer from Lloyds TSB Corporate Markets has shown that respondents think the rate of inflation will be higher in a year's time.
Of the 2,000 consumers surveyed, 60 per cent said they thought that interest rates would be higher in a year's time with 13 per cent saying they thought they would fall.
The number of people who said they felt secure in their jobs fell for the sixth month in a row, but in contrast the amount of people saying they thought prospects were better now than a year ago rose from 55 to 56 per cent.
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Trevor Williams, chief economist at Lloyds TSB Corporate Markets, said: "Recent price cuts at the supermarket petrol pumps have so far had no effect on consumer inflation expectations."
He went on to say that this is a matter of "urgent concern" for the Bank of England.
Bloomberg today reported that the Bank of England might cut interest rates this year to try and prevent a recession. It also claims the current rate of inflation misses the government target by the "widest margin ever".
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