UK public inflation expectations rise in October -Citi/YouGov

Shoppers push trolleys along an aisle inside an ALDI supermarket near Altrincham, Britain, Feb 20, 2023. REUTERS/Phil Noble/File photo

The British public’s expectations for inflation over the medium to long term, which are closely watched by the Bank of England, rose in October, according to a survey published on Monday.

Inflation expectations in five to 10 years’ time picked up to 3.5 percent from 3.3 percent in September, the survey by U.S. bank Citi and polling firm YouGov showed.

Public expectations for inflation in 12 months’ time were stable at 4.2 percent.

“With compressed corporate margins risking a more persistent period of elevated price growth, both fiscal and monetary policy should remain cautious,” Citi economist Benjamin Nabarro wrote in a note to clients.

“We expect the changes to leave cumulative growth through 2024/5 worse off overall”.