UK inflation expectations continue to rise

Last week, the Bank of England published the latest quarterly survey of public attitudes to inflation. It wasn't good. People seem to be bracing themselves for higher prices next year.

Here are the main highlights from the survey:

• When asked to give the current rate of inflation, respondents gave a median answer of 3.9 percent, compared with 3.6 percent in August.
• Median expectations of the rate of inflation over the coming year were 3.9 percent, compared with 3.4 percent in August.
• When asked about expected inflation in the twelve months after that, respondents gave a median answer of 3.2 percent, compared with 2.9 percent in August.
• When asked about the future path of interest rates, just over half  of respondents expected rates to rise over the next 12 months.