Last month, the British public's expectations for inflation over the next year increased by the most since 2016, with Britons saying they were the least satisfied with how the Bank of England was doing its job in nearly a decade.

According to a survey commissioned by the central bank, the median estimate for price increases in the next 12 months is 3.2%, the highest since 2019 and up from 2.7% in August. The figure for the next five years was 3.1%. Both of these estimates are significantly higher than the central bank's 2% target.

When asked to rate the BOE's performance in "setting interest rates to control inflation," the net satisfaction balance – the proportion satisfied minus the proportion dissatisfied – was 14%, the lowest since 2012.

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The survey comes at a time when inflation in the United Kingdom is at its highest in a decade, thanks to a surge in energy prices, a number of high-profile supply chain issues, and increased demand following coronavirus lockdowns. While the BOE expects the pace to slow next year, the results suggest that higher price expectations are becoming more ingrained.

This may worry officials and increase calls for rate hikes in the near future. The bank was widely expected to raise interest rates for the first time since the pandemic at its meeting next week, but the emergence of the omicron variant of Covid-19 has pushed bets on a move back to 2022.

The Kantar poll, conducted between November 9 and November 15, indicates that the public is becoming more prepared for tighter monetary policy. It found that 60% of respondents expected interest rates to rise over the next 12 months, the highest level since 2017 and up from 43% in August.