Consumers feeling the pinch
The Bank of England’s latest inflation report reveals people believe inflation stands at 4.1% rather than the 2.6% published for July.
Craig Palfrey, partner of Penguin Wealth, said: “While inflation has fallen people aren’t feeling any better off .
“People still think we’re in 4% plus territory, which suggests all is not well in the economy.”
Meanwhile 23% of people believe the Bank of England should cut the base rate while just 17% thought rates should go up.
Palfrey added: “People are clearly conscious that rates are not going up any time soon. If anything, more people believe a further rate cut is likely, not that there’s much room for manoeuvre on this front.
“It comes as no surprise that fewer people are satisfied with the Bank’s management of inflation. After all, its recent track record of managing inflation has been average at best, dire at worst. People aren’t confident that inflation will be falling to target any time soon.”
He also warned that inflation may have come down but it’s still a threat and there’s every chance it could begin to rise again given the third round of quantitative easing launched earlier this year.