Britain's economic situation is showing signs of improvement despite the ongoing uncertainty surrounding the eurozone.
That is according to the Bank of England's (BoE) latest Quarterly Bulletin published today (20 June), which has indicated that the upside risk in terms of inflation expectations from consumers have receded since the end of 2011.
Yesterday, the Office for National Statistics announced that the country's consumer prices index (CPI) measure of inflation declined to 2.8 per cent in May from three per cent one month earlier.
And Rashmi Harimohan, a member of the BoE's Monetary Assessment Division believes the risks that had previously been feared from long-term expectations "appear to have not crystallized".
During an article written in the institution's Quarterly Bulletin, Mr Harimohan went on to say that the outlook for inflation remains in doubt, but indicated the figure will stay above the government's target level of two per cent for the rest of the year.
By Asim Shah