UK Q3 Inflation Expectations Hold Steady: Barclays Basix

By David Robinson

     LONDON (MNI) - UK inflation expectations held steady in the third quarter,

with year ahead ones unchanged from the second quarter at 2.4%, the latest

Barclays Basix survey found.

     Inflation expectations for a year further out dipped to 2.8% from 2.9% in

the second quarter and five year ahead inflation expectations were unchanged at

3.9%, the survey showed. The steadiness of headline inflation in the most recent

official data has probably added to the public perception that inflation will

not keep rising.

     The Bank of England will release its own inflation expectations survey

results next Friday. In July headline official inflation data held steady on the

previous month, up 2.6% year-on-year.

     The BOE MPC is expecting headline inflation to stay above its 2.0% target

for the next three years but opinions are divided over whether it will reach the

3.0% level or plateau before then.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

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