Citi/YouGov: Inflation Expectations moderate for the third successive month

Citi note that “UK households' long-run inflation expectations eased to a third consecutive month in May according to the Citigroup/YouGov Tracker. Long-run expectations (5-10 years ahead) fell to 3.5% from 3.6%. These data are now back at the joint lowest since August 2021 and 1.3pp below their August peak."

• "Expectations for the next 12 months also eased by 0.5pp to 4.7% – the lowest since December 2021."
• "Today’s data suggest upside risks that have stalked UK inflation expectations in recent months remain - with both long- and short-term series still above pre-Covid ranges."
• "However, our data suggest household inflation expectations remain anchored at target consistent levels. With food shortages primarily responsible for recent volatility and headline inflation now on a downward trajectory, we think these data are more likely to ease further.”