British Executives See High Inflation Lingering for Three Years

“The Bank of England’s Decision Maker Panel survey for August showed medium-term inflation expectations drifting higher for a fourth straight month. This is the data series most closely followed by the BOE’s Monetary Policy Committee right now, as it looks for signs that inflation is becoming embedded. Equally worrying was the rise in expected wage growth one-year ahead. Taken together with July’s hotter-than-expected CPI and jobs data, the reading makes a 50 basis-point rate hike, or a larger move, highly likely at the central bank’s September meeting.”