–Year-Ahead Expectations Rise To 3.6% y/y In Jan Vs 3.5% In Dec
–Long-Term Inflation Expectations Falls To 3.7% Y/Y Vs 3.8% Dec
LONDON (MNI) – Year-ahead inflation expectations rose again in
January, hitting their highest level since September 2008, the
YouGov/Citi survey revealed.
With inflation outturns rising, the public’s inflation expectations
appear to have risen in synch. Longer term inflation expectations, for
the next 5 to 10 years, dipped to 3.7% from 3.8%, still well above the
Bank of England Monetary Policy Committee’s 2.0% target.
The survey found only 16% of respondents expected prices to rise by
2% or less over the longer term, with 46% expecting them to rise by 4%
or more.
Economists at Citi said in a note that the January BOE MPC minutes
showed MPC members “growing concern at the recent uptrend in inflation
expectations” and these elevated expectations, along with strong cost
pressures, “could make it much harder to keep inflation on target over
time.”
–London Newsroom: Tel:+44207 862 7491;email:drobinson@marketnews.com
[TOPICS: M$$BE$,MT$$$$,M$B$$$,MABDS$]
