graphdown thumb medium90 80TMG Digital reports that the Bureau for Economic Research (BER) said that its recent survey results indicated that average consumer inflation expectations for 2017 declined from 6.0% in the third quarter to 5.8% in the fourth quarter.  

This was the first time since the third quarter of 2015 that average expectations were below 6%.  The BER indicated:  “During the fourth quarter‚ both analysts and business people revised their inflation expectations for 2017 downwards by 0.1 percentage point (% pt) relative to the third quarter‚ while trade unions reduced their forecast by 0.6% pts.”  On average for 2018‚ respondents expected inflation to remain unchanged at 5.8% (analysts - 5.4%; trade unions - 5.9%; business people - 6.0%).  Once again the survey respondents did not change their view much on economic growth.  They still expected that it would accelerate from 0.6% in 2016 to 1.3% in 2017.


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