–Year-Ahead Expectations Rise To 2.9% y/y In Aug Vs 2.7% In July
–Long-Term Inflation Expectations Remain Stable At 3.3% Y/Y
LONDON (MNI) – The YouGov/Citi survey of UK inflation expectations
among the general public has revealed a climb in short-term inflation
expectations.
The median for inflation expectations in the year ahead rose to
2.9% y/y in August from 2.7% y/y in July, just slightly below the 3.0%
peak seen in June.
However, the median for inflation expectations over the longer term
(next 5-10 years) remained stable at 3.3% y/y for the third consecutive
month.
Commenting on the data, Citi analysts said there was no sign of any
developing deflation mentality:
“Indeed, there is more of a tilt to an inflation mentality.
Only 1% of people expect prices to fall in the year ahead and 11% expect
prices to rise by 6% or more (up from 5% as recently as April, and the
highest since late 2008).”
–London Newsroom: Tel:+44 207 862 7492;email: wwilkes@marketnews.com
[TOPICS: M$$BE$,MT$$$$,M$B$$$]
