June 26 (Reuters) – The British public’s expectations for future inflation continued to recede in June, according to a survey from U.S. bank Citi and pollsters YouGov that should ease concerns at the Bank of England about persistent price pressures.
Expectations for inflation in five or more years’ time, closely watched by the BoE, fell to 3.9% this month from 4.0% in May.
Year-ahead expectations, which tend to be influenced by moves in short-term inflation and energy price gauges, slid to 3.8% from 4.7%.
“With such a sharp retracement, and levels now near their pre-conflict level, we think the risk of deanchoring is fading,” said Citi economist Callum McLaren-Stewart, referring to when consumers are no longer confident their central bank can tame price pressures.
“We expect inflation expectations to unwind further, especially in light of the MOU (memorandum of understanding) between the United States and Iran.”
The online survey of 2,021 adults took place June 22-23.
(Reporting by Andy Bruce; Editing by Muvija M)
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