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5-year inflation expectations fall

UK DATA
  • The 5-year ahead inflation expectations number in the BOE/Ipsos number of 3.1% in August is down from 3.5% in May.
  • This should be comforting for the BOE - and probably reduces the probability of a 75bp hike next week somewhat.
  • Note that the survey was conducted 5-8 August - so way ahead of any announcement on energy price freezes.

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