The British public's expectations for inflation in a year's time rose to a five-year high of 3.2 percent in the fourth quarter of 2018 from 3 percent in the previous period. Expectations for inflation in two years' time eased back to 2.8 percent from 2.9 percent; while inflation in five years' time was seen at 3.5 percent, compared with 3.6 percent three months earlier. Inflation Expectations in the United Kingdom averaged 2.71 percent from 1999 until 2018, reaching an all time high of 4.40 percent in the third quarter of 2008 and a record low of 1.50 percent in the fourth quarter of 1999.
Inflation Expectations in the United Kingdom is expected to be 2.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Expectations in the United Kingdom to stand at 2.20 in 12 months time. In the long-term, the United Kingdom Inflation Expectations is projected to trend around 2.00 percent in 2020, according to our econometric models.