BoE Sees Sharp Drop in Inflation Expectations Following Survey Provider Change

The Bank of England reported a sharp drop in the public's expectations for future inflation after changing its survey provider. The change from Ipsos to Savanta resulted in lower year-ahead inflation expectations, falling to 3.2%, compared to 4.0% previously.

The Bank had previously reported Ipsos data for May, which showed year-ahead inflation expectations of 4.0%. However, it was revealed that Savanta also conducted a survey in May, delivering results around half a percentage point lower than Ipsos at 3.6%, 3.1% and 3.3% respectively.

The Bank's change in survey provider has made it difficult to draw firm conclusions about the trend in inflation expectations. The central bank said comparisons between the May and August results should be treated with caution, as they reflect changes in the provider as well as like-for-like changes in expectations.