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UK inflation expectations for next 12 months edge up in August - Citi/YouGov

Published 02/09/2014, 13:34
Updated 02/09/2014, 13:40
UK inflation expectations for next 12 months edge up in August - Citi/YouGov

LONDON (Reuters) - Britons' expectations for inflation over the next 12 months edged up in August to 2.3 percent from 2.2 percent in July, a monthly poll by YouGov showed on Tuesday.

Inflation expectations for the next five to 10 years rose to 3.1 percent in August from 3.0 percent in July.

The official measure of consumer price inflation fell to 1.6 percent in July, below the Bank of England's 2.0 percent target.

"There is no sign that that the recent dip in CPI inflation below target is pulling inflation expectations lower," said Michael Saunders, chief UK economist at survey sponsor Citi.

"But nor has the mix of strong economic growth, rapid drop in unemployment and buoyant house price gains sent inflation expectations sharply higher."

(Reporting by Andy Bruce; Editing by William James)

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