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Bloomberg
Half of Britons say that the UK’s departure from the European Union has pushed up their expectations for price growth, a Bank of England (BOE) survey showed.
Inflation expectations for the coming year stood at 3.3 percent in August, the BOE said, the highest since 2013 and up from 3.1 percent in May.
Consumers are slightly more optimistic about the longer term, with respondents saying they expect inflation of 3.1 percent in five-years’ time, down from 3.8 percent in May.
A further fall in the pound as well as new trade barriers could push price growth above the BOE’s 2 percent target once the UK quits the EU. Still, 10 percent of respondents to the survey said Brexit has lowered their expectations for price growth.
Among them could be Wetherspoon pub CEO Tim Martin, who says he would cut prices to an “unbelievable low†after Brexit.