Britons' inflation expectations for the year ahead eased slightly in May, a survey by the Bank of England and GfK NOP showed Friday.

Consumers' one-year ahead inflation expectations slowed to 3.9 percent in May from 4 percent in February. Respondents forecast inflation to slow to 3.2 percent during twelve months after next year compared to 3.4 percent expected in the previous survey period.

Expectations over the next five years weakened to 3.3 percent from 3.5 percent. However, the predictions remained above the Bank of England's 2 percent target.

Accounting to the respondents, the current rate of inflation was 4.5 percent compared to 4.4 percent in February.

The net satisfaction balance, which is the proportion of consumers satisfied with the central bank's handling of the price situation minus the proportion dissatisfied, increased to plus 22 percent from plus 17 percent in February.

Inflation in the U.K. rose to its highest level in thirty months in April, led by higher travel costs during the Easter holidays. Central bank governor Mervyn King expects the rate to pick up further in the next few months with increase in energy prices.

Inflation climbed to a bigger-than-expected 4.5 percent in April from 4 percent in March. The BoE has held interest rates at a record low 0.5 percent since March 2009 to support the economy.

RTTNews