Survey respondents overestimated current levels of inflation in the public opinion polls in February, but they were more optimistic than the Bank of England in this year's forecast.
The Bank of England's latest inflation attitude survey found that the estimated public inflation rate was 4.9% in February, but the official figures showed the actual figures of 3% in the latest data in January. 
But looking ahead, survey respondents are hoping for inflation of 3.2% next year, despite the bank itself forecasting a 3.7% rise.
When asked about future routes for interest rates, 34% of respondents expected to rise in the next 12 months, up from 33% in November 2024.
However, the market is priced for reductions.
Meanwhile, the 23% forecast rate will remain roughly the same for the next 12 months from 22% in November 2024, and the 29% forecast rate will fall over the next 12 months from 34% in November 2024.
Sarah Colles, the individual finance director for Hargreaves Lans Down, said:
“That's not a big shock. They live a busy life and keeping these things isn't a big priority. But if you're too far, you might be there for awkward surprises.
“When asked to speculate on what inflation was in February, they knew that inflation had declined.
“On the other hand, when asked to estimate what's going on with savings and mortgage fees, they assume the rates went up. In fact, they actually fell a bit.”
