The British public’s expectations for future inflation continued to recede in June, according to a survey from U.S. bank Citi and pollsters YouGov. This should ease concerns at the Bank of England about persistent price pressures.
Expectations for inflation in five or more years’ time, closely watched by the BoE, fell to 3.9% this month from 4.0% in May. Year-ahead expectations slid to 3.8% from 4.7%.
“With such a sharp retracement, and levels now near their pre-conflict level, we think the risk of deanchoring is fading,” said Citi economist Callum McLaren-Stewart, referring to when consumers are no longer confident their central bank can tame price pressures.
The online survey of 2,021 adults took place June 22-23.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
