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The public's expectations for short-term inflation have eased but perceptions still outstrip the official rate of price rises, Bank of England figures showed.
Analysts sounded an upbeat note on UK equities on Friday after the Conservative Party won a majority in the general election, highlighting a preference for stocks with domestic exposure.
Boris Johnson's Conservative Party was set for a large majority in parliament after winning seats in traditional Labour heartlands as Labour leader Jeremy Corbyn said he would not contest the next election.
