Lloyds survey shows public expecting rising prices

by Richard Kilner

Story link: Lloyds survey shows public expecting rising prices

The March results of the Lloyds TSB Corporate Markets Consumer Barometer have been released, and reveal that consumers are predicting higher prices over the course of the next 12 months.

In addition, those surveyed also believe that interest rates, presently at a record low of 0.5%, will increase.

Two thousand consumers responded to the survey, with 51% believing prices will go up, a 3 point rise from the 48% that believed prices would increase in February.

Estimated inflation was 4%, and 45% of respondents stated they thought interest rates would rise, a significant increase on the 27% in February who held that view.

The chief economist at Lloyds TSB Corporate Markets, Trevor Williams, has said that despite a surprise rise in CPI recently most indicators were that prices would fall.

Williams shares the perspective of the Bank of England, which was so concerned earlier this month about the prospect of undershooting its 2% CPI target in the medium term that, it not only cut 50 basis points from the interest, but also embarked upon £75bn of quantitative easing, the first time such a measure has occurred in the UK’s history.