–Mar Year-Ahead Inflation Expectations 2.7% Vs 2.8% In Feb
–Mar Longer Term Inflation Expectations Stable At 3.4%
LONDON (MNI) – UK year-ahead inflation expectations fell slightly
in March from February while longer-term inflation expectations were
stable at 3.4%, YouGov/Citi survey.
Citi said that mid-term inflation expectations are markedly down
from the mid-2011 peak of 3.9% y/y in June 2011, but the March figure
is still just above the recent low of 2.6% seen in January 2012.
The median for inflation expectations in the longer term (next 5-10
years) was stable at 3.4% y/y in March, having peaked at 4.1% y/y in
June 2011.
The latest figure matches the long-run average since the survey
began in late 2005. The BOE/NOP quarterly survey also recently showed
that inflation expectations in February had fallen from three months
earlier.
Citi said that the results should reassure the MPC that the recent
prolonged inflation overshoot, renewed expansion of QE and recent
increase in petrol prices have not destabilised inflation expectations.
–London Newsroom: Tel:+44207 862 7492; email:ukeditorial@marketnews.com
[TOPICS: M$$BE$,MT$$$$,M$B$$$,MABDS$]
