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IoD: The real fear is that inflation becomes embedded in routine business decisions

04 Nov 2021

Commenting on today’s decision by the Bank of England not to raise interest rates from a historic low of 0.1%, Kitty Ussher Chief Economist at the Institute of Directors, said: 

“Transitory inflation as the economy reopens is one thing, but the real fear is that inflation will become embedded in routine business decisions. 

“With the vast majority (86%) of Institute of Directors members now expecting prices to rise faster than the Bank of England’s target next year, and a substantial minority (37%) expecting inflation to run at over 4%, the risk is that the reporting of today’s decision will only raise expectations of inflation further.” 


Full Survey Results 

608 respondents, conducted between 13-29 October 2021 

What do you think the annual rate of inflation will be by the end of next year? That is, by the end of 2022.  



Total

Less than zero (i.e.prices will fall)

0%

Between zero and the Bank of England's next target of 2%

2%

Around the Bank of England's target of 2%

10%

Higher than the Bank of England's target of 2%

49%

Between 4% and 6%

33%

Higher than 6%

4%

Don't know

2%


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