LONDON (Reuters) – The British public’s expectations for inflation in the coming 12 months eased in February to the joint-lowest level in three years, a survey showed on Friday.
Year-ahead inflation expectations fell to 2.3%, matching December’s recent low point, from 2.5% in January, bank Citi and polling firm YouGov said.
Expectations for inflation in five to 10 years’ time also decreased, to 3.0% from 3.1%.
“With both short and long-run inflation expectations below their long-run averages, downside risks to inflation remain significant. The impact of coronavirus remains a significant unknown,” economists at Citi said.
“However we still expect weak inflation to add impetus to the case for further monetary easing in the second half of 2020.”
(Reporting by Andy Bruce; Editing by William Schomberg)