Citi/YouGov: UK Inflation Expectations Rise Sharply in August 2023
UK Public Inflation Expectations and Market Reactions
Survey Results and Recent Trends
LONDON, Aug 25 (Reuters) - Public inflation expectations in Britain rose in August, changing course after falling in recent months, a survey from U.S. bank Citi and pollsters YouGov showed on Tuesday.
Short-Term and Long-Term Inflation Projections
Expectations for inflation over the next 12 months jumped to 3.9% from 3.4% in July while expectations for price growth in the longer term increased to 4.1% — their highest level since April — from 3.7%.
Citi's Commentary on Inflation Outlook
"With inflation set to pick up over the coming months, this is a hawkish development in this series," Citi said.
Bank of England's Response and Future Outlook
The Bank of England is watching closely for signs that the jump in energy prices caused by the Iran war could turn into longer-lasting inflation pressures.
Considerations for Future Reports
Citi said it was wary of over-interpreting one report in isolation and that "next month's release should give a better steer on how to interpret this jump."
(Writing by William Schomberg; Editing by Mark Porter)
