–Longer-Run Expectations Rise To 3.3% Vs 3.1% In Feb
–Citi Says Public Don’t Share BOE View CPI To Fall To V Low Levels
LONDON (MNI) – UK year-ahead inflation expectations are stable
at 2.3% in March, according to the latest YouGov/Citi survey.
Longer-term inflation expectations edged up to 3.3% y/y YoY in
March from 3.1% in February.
According to the survey the UK public does not seem to share the
Bank of England’s view that inflation will fall to very low levels in
the year ahead.
“The MPC expect inflation to fall below 1% over the next year, but
56% of the general public (excluding the ‘don’t knows’) expects
inflation to exceed 2% over the year ahead. Among the general public,
75% of people expect inflation to exceed 2% year on year over the
longer term.
While inflation expectations are not yet at levels that will prompt
the Monetary Policy Committee to hike, the survey says, it goes on to
say that there seems to be “something of a credibility deficit in the
UK’s anti-inflation framework”.
“A weakness that may well become more pressing if the mix of high
CPI inflation, weak fiscal position and hung parliament send inflation
expectations rising further in coming months”.
–London Newsroom: Tel:+442076341655;email:dthomas@marketnews.com
[TOPICS: M$$BE$,MT$$$$,M$B$$$]
