LONDON (Reuters) – The British public’s expectations for inflation over the next year and also the longer term fell in February, U.S. bank Citi said after publishing a monthly survey conducted by market research company YouGov.
Citi said public expectations for inflation in 12 months’ time fell to 3.6% in February from 3.9% in January, while expectations for the five to 10 year period fell to 3.5% from 3.6%.
“For now, the longer-term data in particular point to some lingering risks. However, with inflation now set to fall to 2% in the second quarter, we think the imminent danger is fading,” Citi said in a research note.
Commenting on the potential implications for Bank of England policymakers, Citi said:
“We think these data highlight potential concerns should large further cost shocks emerge. But we continue to see scope for less inflationary aversion and a more balanced view of the economic risks as we move into the middle of the year.
(Reporting by Farouq Suleiman; editing by William James)
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