Survey shows inflation expectations hit record high in January

LONDON (Reuters) - Britons' inflation expectations for the next 12 months rose to a series high of 3.3 percent in January, a survey by Citigroup/YouGov showed on Wednesday.

Inflation expectations have leapt from 2.7 percent in December and are now the highest since the survey started in 2005, a reading that is likely to aggravate the Bank of England's concerns about rising inflationary pressures.

The Bank is expected to cut interest rates from the current 5.5 percent next week, with markets expecting further cuts this year to help shore up the economy, but the central bank may be reluctant to cut too far, too fast if inflation holds up.

"These results are bound to alarm the Bank of England, fitting in with other signs that UK inflation expectations are high and rising," Citigroup/YouGov said.