–Jan Year-Ahead Inflation Expectations 2.6% Vs 3.1% In Dec
–Jan Longer Term Inflation Expectations 3.2% Vs 3.4% In Dec
LONDON (MNI) – Both UK year ahead and longer-term inflation
expectations fell further in January, according to the latest
YouGov/Citi survey.
Inflation expectations on the year-ahead measure eased to 2.6% in
January from 3.1% in December, the lowest since April 2010. The monthly
change in the latter is the fourth biggest drop since the survey began
in late 2005.
Headline inflation in the UK has fallen markedly and the
Citi/YouGov survey shows expectations dropping at a similar pace. The
lastest official data showed December CPI was up 4.2% on the year, down
from 4.8% in November – the largest monthly fall in inflation since
April 2009.
The median for inflation expectations in the longer term in the
Citi/YouGov survey fell to 3.2% year-on-year in January from 3.4% in
December and 3.5% in November, having peaked at 4.1% year-on-year in
June 2011. The latest figure is the lowest since September 2010.
While this key reading for long-term inflation expectations remains
above the 2% target, the latest reading is a little below the average of
recent years (average since end-2005 is 3.4% y/y).
–London Newsroom: Tel:+44207 862 7491; email:ukeditorial@marketnews.com
[TOPICS: M$$BE$,M$B$$$,MABDS$]
