Inflation expectations ease

Inflation expectations have fallen slightly this month, according to a prominent survey released yesterday – yet people still expect prices to keep ticking up. Median inflation expectations for the year ahead edged down to 2.8 per cent, the YouGov report for Citigroup said, down from three per cent in October. In the longer term – the next five to 10 years – inflation is expected to be 3.4 per cent, the survey showed. “There is little sign of deflation fears,” it added. “The share of people that expect prices to fall or be stable in the year ahead is only four per cent” – below the long-term average of nine per cent.