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UK inflation expectations hold steady at 5-year low: YouGov

Wednesday, October 29, 2014 - 18:13

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Britons' expectations for inflation over the next 12 months held steady in October at 1.9 per cent, matching the lowest reading since 2009, a monthly poll by YouGov showed on Wednesday.

[LONDON] Britons' expectations for inflation over the next 12 months held steady in October at 1.9 per cent, matching the lowest reading since 2009, a monthly poll by YouGov showed on Wednesday.

Inflation expectations for the next five to 10 years edged down to 2.9 per cent in October from 3.0 per cent in September.

"Unlike 2009, the current drop in inflation expectations is not seeing a rise in expectations of deflation," said Michael Saunders, economist at survey sponsor Citi.

"Rather, the general public's expectations are becoming more tightly concentrated on low but positive inflation. All this is likely to be reassuring to the Monetary Policy Committee." The official measure of consumer price inflation fell to 1.2 per cent in September - its lowest level in five years and well below the Bank of England's 2.0 per cent target.

REUTERS

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