UK public inflation expectations fall to joint three year low

09-03-2020

The British public’s expectations for inflation in the coming 12 months eased in February to the joint-lowest level in three years, a survey showed on Friday.

Year-ahead inflation expectations fell to 2.3%, matching December’s recent low point, from 2.5% in January, bank Citi and polling firm YouGov said.

Expectations for inflation in five to 10 years’ time also decreased, to 3.0% from 3.1%.

“With both short and long-run inflation expectations below their long-run averages, downside risks to inflation remain significant. The impact of coronavirus remains a significant unknown,” economists at Citi said.

“However we still expect weak inflation to add impetus to the case for further monetary easing in the second half of 2020.”

Source: UK Reuters