LONDON (Reuters) - The British public’s expectations for inflation over the next 12 months fell sharply in November, according to a survey that will be a relief to Bank of England policymakers.
Inflation expectations for the year ahead fell to 2.7 percent last month from a two-year high of 3.2 percent in October, a survey by polling company YouGov showed.
Bank of England Governor Mark Carney has said that October’s rise was pushed up by media coverage of inflation-busting rises in gas and electricity bills.
“The MPC may be reassured to an extent by the evidence that inflation expectations have fallen back in November, and this adds support to their view that the surge in October mainly reflected the large energy price hikes announced in that month,” said Michael Saunders, UK economist at Citi.
Expectations for inflation over the next 5-10 years also fell back last month.
Reporting by Christina Fincher; editing by William Schomberg