UK public inflation expectations rise in October -Citi/YouGov
2023.12.05 00:52
© Reuters. FILE PHOTO: Shoppers push trolleys along an aisle inside an ALDI supermarket near Altrincham, Britain, February 20, 2023. REUTERS/Phil Noble/File Photo
(Reuters) -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% from 3.3% 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%.
“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”.
