The latest Bank of England (BoE) Decision Maker Panel (DMP) survey for February showed on Thursday that UK firms expect their output price inflation to decline over the next year.
Key takeaways
One-year ahead CPI inflation expectations declined further to 3.3% in February, down from 3.4% in January.
Expected year-ahead wage growth remained unchanged at 5.2%.
Three-year ahead CPI inflation expectations fell to 2.8% from 2.9%.
Market reaction
The Pound Sterling is little affected by the UK businesses’ falling inflation expectations, as GBP/USD gains 0.18% on the day to trade at 1.2750, as of writing.
Source: https://www.fxstreet.com/news/boe-dmp-survey-uk-firms-inflation-expectations-decline-in-february-202403071002