9 Mar 2015
Inflation expectations dipped to the lowest since 2001 - BoE/GfK NOP survey
FXStreet (Mumbai) - The UK public's expectations in February for price growth over the next year have slid to their lowest level since 2001, while people expect interest rates to remain unchanged, the Bank of England (BoE) and GfK NOP survey showed on Friday.
Median expectations of inflation for the next 12 months fell to 1.9%, markedly lower compared to the 2.5% growth expected in the previous quarterly survey elaborated in November.
Expectations of inflation in two years' time also dipped, down to 2.1% from 2.5%, the survey showed. The projections for five years' were also scaled down, to 2.8% from 3%.
The results came as consumer price growth in the UK fell to a record low 0.3% in January.
Furthermore, the proportion of Britains expecting interest rates to rise in the 12 months eased to 36%, following 37% in November.
The proportion expecting a cut in rates, however, doubled to 8% - the highest since August 2012.
Median expectations of inflation for the next 12 months fell to 1.9%, markedly lower compared to the 2.5% growth expected in the previous quarterly survey elaborated in November.
Expectations of inflation in two years' time also dipped, down to 2.1% from 2.5%, the survey showed. The projections for five years' were also scaled down, to 2.8% from 3%.
The results came as consumer price growth in the UK fell to a record low 0.3% in January.
Furthermore, the proportion of Britains expecting interest rates to rise in the 12 months eased to 36%, following 37% in November.
The proportion expecting a cut in rates, however, doubled to 8% - the highest since August 2012.