LONDON (Reuters) – The British public’s expectations for medium- and long-term inflation, which are closely monitored by the Bank of England, rose in August, a survey published on Friday showed.
Inflation expectations five to 10 years from now rose marginally to 3.3% from 3.2% in July, the survey by U.S. bank Citi and polling firm YouGov showed.
Public inflation expectations 12 months from now rose from 4.3% to 4.4%.
The Bank of England is widely expected to raise interest rates for the 15th time in a row on September 21 as it grapples with the highest inflation rate among the world’s large rich economies.
Citi said it expects this data to continue to decline in the coming months as headline inflation recedes.
“However, this data reaffirms that upside risks around energy, particularly over the coming winter, could continue to pose challenges.”
Reporting by Juby Babu and William Schomberg; Editing by Daniel Wallis.
Our standards: The Thomson Reuters Trust Principles.
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