Inflation expectations at record high in interest rates signal (opens original article in a new tab)

The Bank of England warns of potential interest rate hikes as inflation expectations reach record highs, with CPI inflation at 2.8% and concerns over trade disruptions from the Iran conflict.

• Inflation expectations hit a record high of 3.9% over the next five years according to the Bank of England and Ipsos survey
• CPI inflation was 2.8% for the year to April, with expectations of it rising towards 3% in the next reading
• The Bank of England may consider interest rate hikes due to persistent inflation and potential trade disruptions from the Iran conflict
• The European Central Bank raised interest rates to 2.25% to combat inflation threats