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Short-Term Inflation Expectations Dip, Inches Higher Longer-Term in DMP Survey

BOE

The BoE's Decision Maker Panel Survey shows short-term inflation expectations dipping, while longer-term expectations rise:

  • One-year ahead CPI inflation expectations decreased to 5.7% in June, down from 5.9% in May.
  • However, three-year ahead CPI inflation expectations slightly increased to 3.7% in June, up 0.2 percentage points relative to May.
  • Current CPI perceptions of firms were 8.9% (down from 9.8% in May) which is close to the 8.7% actual CPI inflation rate during the survey window.
Full Decision Maker Panel Survey results here: https://www.bankofengland.co.uk/decision-maker-pan...
GBP/USD fades slightly on the back of the survey results, with GBP/USD shedding around 20 pips to trade back to flat on the day.

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