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UK inflation expectations ease back in April - survey

Published 29/04/2015, 16:53
© Reuters. A customer looks at fruit in a store in central London

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

The monthly Citi/YouGov poll found year-ahead inflation expectations fell to 1.1 percent this month from 1.4 percent in March, when they rose for the first time since August last year.

Expectations for inflation over the next five to 10 years slipped to 2.6 percent from 2.8 percent, matching the record low set in January.

Citi economist Michael Saunders said there was no sign that weak inflation expectations were putting consumers off making purchases and household incomes were growing in real terms.

"Nevertheless, the drop in inflation expectations, plus weakness in core inflation and pay growth, reinforces the sense that the (Bank of England's Monetary Policy Committee) is in no rush to hike rates," he said.

© Reuters. A customer looks at fruit in a store in central London

British consumer price inflation fell to zero percent in February for the first time on record and remained there in March.

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