UK public inflation expectations eased in March: Citi/YouGov
The British public's expectations for inflation, a crucial indicator for the Bank of England as it weighs another interest rate hike, cooled in March, U.S. bank Citi said after publishing a monthly survey conducted by market research company YouGov.
Citi said public expectations for inflation in 12 months' time eased to 5.4%, down from 5.6% in February, while expectations for the longer term slipped to 3.7% from 3.8%.
Benjamin Nabarro, economist at Citi, said the figures confirmed that upside risks to inflation pressure were still elevated and he pointed to the shortages in staple foods as one example.
"However, today's data still suggest UK inflation expectations overall remain well anchored at the target consistent level, even if risks persist," he added.
The survey showed recent upward pressure on inflation expectations had been concentrated among women in older age groups, and among lower occupational categories.
A quarterly Bank of England survey last month also showed a decline in public inflation expectations, as well as scant sign that Britons were expecting big wage increases in future - further evidence that a wage-price spiral remains a remote risk.
Benjamin Nabarro, economist at Citi, said the figures confirmed that upside risks to inflation pressure were still elevated and he pointed to the shortages in staple foods as one example.
"However, today's data still suggest UK inflation expectations overall remain well anchored at the target consistent level, even if risks persist," he added.
The survey showed recent upward pressure on inflation expectations had been concentrated among women in older age groups, and among lower occupational categories.
A quarterly Bank of England survey last month also showed a decline in public inflation expectations, as well as scant sign that Britons were expecting big wage increases in future - further evidence that a wage-price spiral remains a remote risk.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
