UK inflation expectations stick at high levels – Citi/YouGov
LONDON (Reuters) – The British public’s expectations for inflation have held stable this month but at high levels that are likely to keep the Bank of England on alert about price growth risks, according to a survey published on Monday.
U.S. bank Citi and polling firm YouGov said their gauge of expectations for inflation in five to 10 years’ time held at 4.2% in May, unchanged from April.
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Public inflation expectations for the coming 12 months edged up to 6.1%, matching March’s record high, from 6.0% in April.
Citi economist Benjamin Nabarro said the figures were likely to mean the BoE remains concerned about medium-term inflation expectations.
“However, we see little in today’s data that should provide a further impetus for an out-sized 50bps move,” he said, referring to the possibility of a half percentage-point interest rate increase.
(Writing by William Schomberg, editing by Andy Bruce)