LONDON: The British public’s expectations for inflation over the next 12 months eased slightly in July, according to a survey on Tuesday that may ease worries among Bank of England officials about underlying price pressures in the economy.
The Citi/YouGov (LSE: YOU.L – news) report showed year-ahead inflation expectations slipped in July to 2.5 percent from 2.6 percent in June. Expectations for the next five to 10 years were stable at 3.1 percent. Both figures are close to their long-run average. “There is … no sign of above-target headline inflation having ‘adverse consequences for inflation expectations’, which would require immediate action,” economists from Citi said, quoting the minutes from the BoE (Shenzhen: 000725.SZ – news) ‘s June rate-setting meeting. British inflation unexpectedly slowed last month for the first time since October, dousing expectations among investors that the BoE might raise interest rates for the first time in a decade next week. The Citi/YouGov poll of 2,039 Britons was conducted on July 20 and July 21.
