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Inflation expectations weakest in more than five years - survey

Published 25/11/2014, 12:43
© Reuters. Employees look out over the main atrium of Lloyd's of London insurance market in the City of London

LONDON (Reuters) - Expectations for inflation in the year ahead have fallen to their lowest level in more than five years, a survey showed on Tuesday.

The monthly Citi/Yougov survey found year-ahead inflation expectations fell to 1.8 percent in November from 1.9 percent in October, their lowest level since August 2009.

Expectations for inflation over the next five to 10 years fell to 2.8 percent from 2.9 percent in October, matching a record low last seen in March.

"These results, and the likelihood that weakness in food and energy will pull headline CPI inflation lower still in coming months, are likely to further encourage the MPC to pursue a 'low for longer' policy in monetary policy," Citi economist Michael Saunders said.

© Reuters. Employees look out over the main atrium of Lloyd's of London insurance market in the City of London

Britain's consumer price index in October rose 1.3 percent after touching a five-year low of 1.2 percent in September.

(Reporting by David Milliken, writing by William Schomberg)

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