UK public's inflation expectations fall in May, Citi/YouGov survey shows

LONDON (Reuters) -The British public's expectations for inflation over the year ahead fell in May to 4.0% from 4.2%, a Citi/YouGov survey showed on Thursday.

Longer-term inflation expectations, however, remained unchanged at 4.2% for the third straight month, the survey showed.

"This should offer some relief after consecutive months of increasing expectations," Citi analysts said of the lower year-ahead expectations.

"But concerns around the elevated level and the static longer-term series remain," they added.

Data last week showed Britain's inflation rate hit a bigger-than-expected 3.5% in April, its highest reading since January 2024, prompting investors to bet on the Bank of England slowing its already gradual pace of interest rate cuts.

(Reporting by Sachin Ravikumar; Editing by Lisa Shumaker)