LONDON (Reuters) -The British public’s expectations for inflation over the longer term have risen in June to their highest since September 2022, a Citi/YouGov survey showed on Wednesday.
Inflation expectations for the five to 10 year-ahead period rose to 4.3% in June from 4.2% in May, while year-ahead expectations fell to 3.9% from 4%.
“These series are continuing to diverge which may raise questions about how well anchored long-term expectations are,” Citi analysts said in the research note.
Official data earlier this month showed British consumer price inflation was 3.4% in May – well above its 2% target – and the Bank of England last week forecast it would rise to 3.7% by September and remain around 3.5% for the rest of the year.
(Reporting by Sam Tabahriti; editing by William James)
