–Sep Year-Ahead Inflation Expectations Unchanged At 2.9%
–Sep Longer Term Inflation Expectations Fall to 3.2% vs 3.3% Aug
LONDON (MNI) – UK year ahead inflation expectations held steady in
September and longer term inflation expectations dipped, according to
the latest YouGov/Citi survey.
Bank of England Monetary Policy Committee members have repeatedly
cited the risk of inflation expectations becoming “de-anchored” on the
back of prolonged, well above target inflation outturns, but the
YouGov/Citi poll suggests this is not happening.
The median inflation expectation for the year ahead in the
September survey was unchanged at 2.9% and longer term inflation
expectations fell to 3.2% from 3.3% in August, July and June.
In recent testimony to the Treasury Select Committee MPC member
Martin Weale said, “The evidence I’ve seen does not suggest inflation
expectations have become de-anchored. The MPC does look at this and it’s
not the picture we’re seeing in the data.”
Citi economist Michael Saunders backed Weale’s view.
“There is still no sign that the long period of above-target
inflation is destabilising inflation expectations. This worry – which is
prominent in MPC speeches – remains a risk rather than reality,”
Saunders said.
–London Newsroom: Tel:+44207 862 7491;email:drobinson@marketnews.com
[TOPICS: M$$BE$,MT$$$$,M$B$$$,MABDS$]
