–Longer-Run Expectations Rise To 4.1% In June Vs 3.5% In May
–Citi: Risk Lg-Tm UK Inflation Expectations Becoming Unhinged
LONDON (MNI) – UK year-ahead inflation expectations for inflation
expectations in the year ahead jumped to 3.9% YoY in June from 3.4% in
May, according to the latest YouGov/Citi .
This was the highest since May-September 2008.
The median for longer-term inflation expectations rose to 4.1% YoY
in June from 3.5% YoY in May and is the highest since the survey began
in late 2005. YouGov/Citi said that the increase of 0.6% was the
biggest one-month rise in inflation expectations since the survey began.
Commenting on these results, Citi said that these results are
likely to cause concern at the BOE.
“It appears that the mix of ultra-low policy rates plus repeated
large inflation overshoots (versus the MPC’s forecasts and target) is
now pushing long-term inflation expectations markedly higher. The speed
of the rise indicates a risk that inflation expectations are becoming
destabilised”.
–London Newsroom: Tel:+442078627492; email:dthomas@marketnews.com
[TOPICS: M$$BE$,MT$$$$,M$B$$$]
