UK inflation expectations fall

LONDON Mon Nov 26, 2012 12:07pm GMT

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LONDON (Reuters) - Public inflation expectations in Britain for the next 12 months fell to 2.8 percent in November from 3.0 percent in October, a survey by polling company YouGov showed on Monday.

Inflation expectations for the next 5-10 years also fell, dropping to 3.4 percent - the lowest since July - from 3.7 percent in October.

The survey of 2,162 people was carried out on behalf of bank Citi, and was conducted between November 21 and November 23, shortly after official data showed consumer price inflation rose to 2.7 percent in October.

"Expectations of continued inflation are translating into expectations of a further decline in living standards - and hence a continued desire to deleverage and caution over spending - rather than stronger cost growth," said Citi economist Michael Saunders.

(Reporting by David Milliken; editing by Patrick Graham)