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UK households' inflation fears ease
Inflation expectations among British households fell from 4.7% in May to 3.8% in June, following a decline in oil prices. This reduces the Bank of England's pressure to raise interest rates and eases concerns over persistent inflation. Long-term inflation expectations also decreased to 3.9%, strengthening the possibility of a return to price stability and leading to expectations of lower interest rates, with forecasted increases limited to just 22 basis points by the end of the year.
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