Five Percent Inflation Predicted

Published: 8/27/2010

According to a Lloyds TSB poll of UK consumers inflation is expected to rise yet again, this being the tenth month in succession where the people of the UK have felt that inflation would increase.

The monthly survey carried out by Lloyds TSB has seen the expectation of people for inflation in 12 months time to be at 5 percent, up from the 4.8 percent they had forecast a month earlier. It is interesting that the recent price reductions on fuel at the forecourt did not stop people from anticipating this further increase.

A different view comes from the Bank of England say Lloyds TSB, with their own forecast being that inflation will be lower than 2 percent within two years.