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UK inflation expectations fall again to six-year low - Citi/Yougov

Published 03/03/2015, 08:36
© Reuters. Mark Carney, the governor of the Bank of England gives the bank's quarterly GDP and inflation forecasts at the Bank of England in London

LONDON (Reuters) - The British public's expectations for inflation in the next 12 months fell to their lowest level in more than six years in February and longer-term inflation expectations were stable at a record low, according to a survey published on Tuesday.

The monthly Citi/YouGov survey found year-ahead inflation expectations fell to 1.0 percent in February, the lowest level since late 2008, from 1.2 in January.

Expectations for inflation over the next five to 10 years were stable at 2.6 percent.

© Reuters. Mark Carney, the governor of the Bank of England gives the bank's quarterly GDP and inflation forecasts at the Bank of England in London

British consumer price inflation hit its lowest level on record in January. The Bank of England says it still expects its next move on monetary policy will be to raise interest rates but it has said it might cut them further below their record low of 0.5 percent if very low inflation becomes self-reinforcing.

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