UK public inflation expectations fall in January, Citi/YouGov survey shows

LONDON, Feb 25 (Reuters) - ‌The British ​public's ​expectations for inflation over the coming year and further ahead fell ‌sharply in February, according to a ⁠monthly survey by YouGov for U.S. bank Citi ‌which was published on ‌Wednesday.

Short-term inflation expectations fell to 3.3% in February from 3.8% in January, while long-term ​expectations fell to 3.6% from 4.1%.

"Despite the volatility in recent months, there ⁠may be cautious reason for optimism that the move this ​month may be something of a 'level shift'," Citi said in a note ​accompanying the survey results.

The ‌bank said the survey was "clearly dovish" for Bank of England interest ⁠rates.

BoE Governor Andrew Bailey said on Tuesday that an interest rate cut in March was ⁠a possibility, although services price inflation in recent ​data had not fallen as much as hoped.

He said he would need further evidence to feel confident ‌about cutting borrowing costs at the bank's policy announcement on March ‌19, having voted with a 5-4 ⁠majority on the ‌Monetary Policy Committee ​to hold interest rates this month.

(Reporting by William James; Editing by Toby ‌Chopra)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Australia's far-right party makes further gains, taking seat in western state
• US military families ride 'roller coaster of emotions' over six months of Iran war
• Finland's Stubb tells German newspaper Russia unlikely to risk attack on NATO