UK inflation expectations for year ahead hit 3-year high

[LONDON] The British public's expectations for inflation over the coming year rose to their highest level in just over three years last month, a monthly survey by bank Citi and polling firm YouGov showed on Wednesday.

Short-run inflation expectations rose to 2.6 per cent from 2.4 per cent in December, the highest since December 2013 and above their long-run average of 2.4 per cent.

The Bank of England forecast in November that inflation would exceed 2.7 per cent by the end of this year, pushed up by the fall in the value of sterling after last year's Brexit vote. The BoE and is due to publish updated forecasts on Thursday.

Citi said longer-run inflation expectations for the next five to 10 years were unchanged at three per cent, their joint-highest level since 2014.

The survey was based on a sample of 2,023 adults polled between Jan 20 and Jan 23.

REUTERS