Inflationary expectations in Britain have not changed

UNITED KINGDOM (OBSERVATORY) –¬†Inflationary expectations among residents of Britain for the year ahead remained unchanged at 2.4% in April, according to a poll published by the financial company Citi and the YouGov questionnaire.

Expectations for annual inflation from 5 to 10 years in April rose to 3.1% against 3%, interrupting the recent series of small cuts, Citi said.

“As short-term and long-term inflation expectations are close to their average indicators, we believe that neither an urgent policy tightening, nor the cancellation of the cycle of incipient rate hikes, is required,” Citi said.

The Bank of England must announce its next decision on the interest rate on May 10. Last week, Governor of the Bank of England Mark Carney raised doubts about the fact that the regulator will raise rates in May.

Inflation in Britain slowed more than expected in March, easing pressure on consumers after a sharp rise in prices and weak wage growth.

Nevertheless, price growth remained well above the Bank of England’s annual target of 2%, which adds expectations that the central bank of the UK will raise interest rates next month.

Consumer prices in March rose by 2.5%, according to the National Statistics Office (ONS), slowing after a 2.7% increase in February.

The slowdown was due to the prices of clothing and tobacco and alcohol, which in March grew much more slowly than a year earlier. The tax changes that pushed prices for tobacco and alcohol a year ago did not take place this year.