<div id="readability-page-1"><div><p>[LONDON] Britons’ short-term and long-term inflation expectations fell in April, in a surprise reading from a monthly survey by YouGov for US bank Citi, which said the data did not give the Bank of England a strong basis for a more hawkish policy position.</p><p>Short-term inflation expectations fell to 5 per cent in April from 5.4 per cent in March, while long-term expectations eased to 4.2 per cent from 4.5 per cent a month earlier, according to the survey published on Monday.</p><p>The numbers are likely welcome news for the Bank of England as it monitors the fallout from the Iran war.</p><p>While the public are poor predictors of inflation, the BoE watches their expectations carefully for signs that price pressures are becoming permanently embedded in the mindset of the public, which could in turn influence interest rate decisions.</p><p>“We think there is still a compelling case to look through the volatility in these series for now until the volatility eases and the trend becomes clearer,” the Citi/YouGov report said.</p><p><strong>‘Little basis yet‘ for more hawkish policy</strong></p><div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p>It said that the big spike in March - when the inflation expectation for the year ahead marked the biggest monthly increase in more than 20 years - could have been due to a spike in fuel prices driven by the war in Iran, describing it as “anomalous”.</p><p>The April figures suggest inflation expectations are retreating as oil prices, and in particular future prices, drop to slightly lower levels, the report said.</p><p>It added that the trend would likely resume its downward path eventually, assuming an orderly return to energy markets over the coming months.</p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="3582" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/0cb566eeb360af34f579bcef5fe7c9c304302846d80d1db990fd22ffc8d49acd/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5372" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/0cb566eeb360af34f579bcef5fe7c9c304302846d80d1db990fd22ffc8d49acd/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Britain’s King Charles jets to US for trip overshadowed by Iran quarrel and DC gala shooting</span></h3><p></p></div></div><div><div><div><p><img height="3096" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/90a6bdc8ea89aafc3c42b0075b40d05d51d409373f7b7cde60c94b5a0a7797ad/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="4564" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/90a6bdc8ea89aafc3c42b0075b40d05d51d409373f7b7cde60c94b5a0a7797ad/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>UK retail sales rebound as drivers stock up on fuel</span></h3><p></p></div></div><div><div><div><p><img height="3762" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/d66f65e88e85eac61bab4d0684b9fb1f9bc28bbc1871c7cdf0e8d33e9c00e962/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5642" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/d66f65e88e85eac61bab4d0684b9fb1f9bc28bbc1871c7cdf0e8d33e9c00e962/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>UK consumer sentiment falls to lowest since 2023, GfK says</span></h3><p></p></div></div></div></div></div></div><p>“So long as the volatility is explicable, and the expectations appear to be both moderating and anchored, we think there is little basis yet to use this data as a convincing argument for a more hawkish policy position,” the report said. REUTERS</p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

CRUD

<p>Britons' short-term inflation expectations fell to 5% in April from 5.4% in March, while long-term expectations eased to 4.2% from 4.5%, according to a YouGov survey for Citi. This decline suggests a retreat in inflation expectations, likely influenced by dropping oil prices. The Bank of England may not find a strong basis for a more hawkish policy, as the volatility in expectations is still being monitored. The report indicates that the spike in March was anomalous, driven by fuel price increases due to the Iran war.</p>

- A monthly survey by YouGov for Citi reveals a surprising decline in UK short-term and long-term inflation expectations for April, with short-term expectations dropping from 5.4% to 5% and long-term expectations from 4.5% to 4.2%.  
- This decline may be positive for the Bank of England, which is monitoring the impact of global events on inflation, particularly rising fuel prices due to the Iran conflict.  
- The report suggests there is insufficient evidence to support a more hawkish policy stance, despite recent fluctuations in inflation forecasts.

UK public inflation expectations retrace in April: survey