UK public inflation expectations cool again: Citi/YouGov survey
Reuters
Published Jan 31, 2023 08:28
Updated Jan 31, 2023 08:55
LONDON (Reuters) - The British public's predictions for inflation cooled again in January, according to a survey on Tuesday that should further comfort the Bank of England that high prices will not become permanently embedded in expectations.
U.S. bank Citi and polling firm YouGov (LON:YOU) said inflation expectations for five to 10 years ahead fell to 3.5% from 3.6% in December - within touching distance of the 3.0% to 3.4% range seen ahead of the COVID-19 pandemic.
For inflation in a year's time, expectations in January fell to 5.4% from 5.7% in December.
The BoE is expected to raise interest rates on Thursday to 4% from 3.5%, according to a Reuters poll of economists.
Citi economist Benjamin Nabarro said business surveys, financial market inflation expectations and strong wage growth would keep upside risks to price pressures very much in the minds of BoE policymakers.
"But for now, the direct risks to expectations appear contained. And, with inflation having now peaked, we think there are tentative signs some of the acute risks that pervaded earlier in 2022 are now beginning to ease," Nabarro said.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.