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UK inflation expectations slip in May - Citi/YouGov

Published 26/05/2015, 12:48
© Reuters. A woman stops to look in the window of a shop in London

LONDON (Reuters) - The British public's expectations for inflation in the next 12 months eased back in May, according to a survey published on Tuesday.

The monthly Citi/YouGov poll found year-ahead inflation expectations fell to 1.0 percent this month from 1.1 percent in April, matching a six-year low set in February. Expectations for inflation over the next five to 10 years remained at 2.6 percent.

Citi economist Michael Saunders said the results would likely reassure the Bank of England's Monetary Policy Committee.

"The report of mild CPI deflation does not seem to be triggering widespread expectations of continued deflation," he said, while noting there was no sign that years of ultra-low interest rates had stoked long-term inflation expectations.

© Reuters. A woman stops to look in the window of a shop in London

Official figures last week showed Britain's annual rate of consumer price inflation fell below zero in April for the first time in more than half a century.

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