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Inflation Expectations

 

Definition: This indicator is compiled from a survey that asks English consumers to measure their expectations for the rate of inflation over the coming year. This survey is conducted by the Bank of England (BOE) and GFK (a German market research company).

 

 

Additional Info: Some insight can be gained from consumer expectations as it may provide clues to their borrowing and purchasing habits over the coming months. If consumers expect higher rates of inflation then they may be less likely to make big purchases, such as property, because of the increase in interest rates that can accompany inflation.

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