–April Longer-Run Expectations Fall To 3.0% From 3.3% In March
–April Year-Ahead Expectations 2.2% Vs 2.3% in March
LONDON (MNI) – UK inflation expectations fell back in April,
despite relatively high headline inflation, according to the latest
YouGov/Citi survey.
Bank of England Monetary Policy Committee members have recently
resurrected the risk of inflation expectations moving higher with
headline current inflation proving resilient. The YouGov/Citi survey,
however, shows expectations falling.
Inflation expectations for the year ahead fell to 2.2% in April
from 2.3% in February and March. Longer term inflation expectations, for
the next 5-10 years, fell to 3.0% y/y in April from 3.3% in March,
hitting their lowest level since last September.
The survey found no evidence of deflation becoming a concern, with
only 1% expecting prices to fall in the year ahead.
Citi economist Michael Saunders said it was too soon to sound the
all clear for inflation expectations, with Citi expecting CPI and RPI to
stay high throughout this year.
–London Newsroom: Tel:+4420 7862 7491;email:drobinson@marketnews.com
[TOPICS: M$$BE$,MT$$$$,M$B$$$]
