–BOE/GfK NOP: Feb Year Ahead Inflation Expectations 3.5% Vs Prev 4.1%
–Longer-Term Inflation Expectations Now 3.2% Vs 3.5% Previously
–Public Estimates Of Current Inflation Ease To 4.8% Vs 5.0% In Nov
LONDON (MNI) – Inflation expectations for the year ahead eased back
in February to 3.5% from the 4.1% seen in November, the latest Bank of
England/GfK NOP Inflation Attitudes survey shows.
This was the lowest reading on this measure since August 2010.
Expectations for inflation in the 12 months after that also eased
back to 2.9% from 3.4% In November while longer-term inflation
expectations (i.e. in 5 years time or so) fell to 3.2% from the 3.5%
seen in November.
Public perceptions of the current rate of inflation fell back from
the 5.0% seen in November to 4.8%.
This latest survey was undertaken between Feb 9 and 14 and in a
second wave of interviews between Feb 16-21. All in all 3,789
respondents were interviewed.
The results of this survey should reassure the Monetary Policy
Committee of the Bank of England that inflation expectations are falling
back in line with the drop in headline CPI from the peak of over 5% it
saw late last year.
The survey found the lowest net balance of respondents expecting
interest rates to rise over the next 12 months since February 2009 – at
+28%.
Asked how satisfied they were with the job being done by the Bank
of England to keep inflation under control, the net satisfaction balance
was +20 – sharply higher than the outturn seen in November of +9%.
–London newsroom: 4420 7862 7492; email: ukeditorial@marketnews.com
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