Inflation expectations mixed in Aug

LONDON (Reuters) - Britons' expectations of the rate of inflation over the next 12 months rose to 4.4 percent in August from 4.2 percent in July but longer-term expectations fell, according to a YouGov/Citigroup survey on Friday.

Britons' expectations of the rate of inflation over the next 5 to 10 years declined for a third month to 3.4 percent -- its weakest reading since the start of the year -- from 3.6 percent in July.

That slide will provide comfort to Bank of England policymakers who are concerned that rising inflation could become entrenched in the public mindset.

So far there has been little sign that rising living costs are feeding into wage settlements but the more hawkish members of the Bank's Monetary Policy Committee have cited this as a risk.

Consumer price inflation rose to 4.4 percent in July, the highest rate since comparable records began in 1997, and is widely expected to peak close to 5 percent before the end of the year. Inflation has been above the central bank's 2 percent target since last October.