UK Public Inflation Expectations Continue to Ease, Survey Finds
Survey Reveals Shifting Inflation Sentiment in the UK
Overview of Survey Results
June 26 (Reuters) - 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 that should ease concerns at the Bank of England about persistent price pressures.
Long-Term Inflation Expectations
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.
Short-Term Inflation Expectations
Year-ahead expectations, which tend to be influenced by moves in short-term inflation and energy price gauges, slid to 3.8% from 4.7%.
Expert Commentary
Analysis from Citi Economist
"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.
Impact of International Agreements
"We expect inflation expectations to unwind further, especially in light of the MOU (memorandum of understanding) between the United States and Iran."
Survey Methodology
The online survey of 2,021 adults took place June 22-23.
(Reporting by Andy Bruce; Editing by Muvija M)
