In October, UK public inflation expectations for the 12 months forward have been at 4.2% however that fell to three.9% in November after which to three.5% in December final yr. The declining pattern is a optimistic takeaway at the least however there’s a danger of worth pressures turning into extra entrenched and cussed within the months to return.
For now, the outlook remains to be that inflation will maintain above 2% and that can maintain the BOE on their toes. Fortunately for the central financial institution, the financial system is proving to be extra resilient to start out the yr at the least.
