UK inflation expectations at the lowest since August 2009

A Citi/YouGov survey has seen inflation expectations drop to the lowest since August 2009. In November perceived long-term inflation dropped to 2.8% from 2.9%, lowest since March, while for the year ahead it fell to 1.8% from 1.9% and the lowest since August 2009

“These results, and the likelihood that weakness in food and energy will pull headline CPI inflation lower still in coming months, are likely to further encourage the MPC to pursue a ‘low for longer’ policy in monetary policy,” Citi economist Michael Saunders said.

The fall in energy prices is only going to lower these expectations