British public expects inflation to stay low, survey shows

Bank of England finds inflation expectations at lowest level for 13 years as public mindset adapts to cheaper oil and potential deflation

The British public's expectations for inflation are at the lowest level in more than 13 years as the nation adjusts to the impact of lower oil prices and the prospect of the first bout of deflation in more than half a century.

Inflation expectations for the year ahead fell to 1.9% when the public were surveyed by the Bank of England in February, compared with 2.5% when they were asked in November.