Inflation expectations pick up in October

LONDON (Reuters) - Britons' inflation expectations for the coming year picked up to 2.0 percent from 1.8 percent in September, according to the Citigroup/YouGov survey.

The median for inflation expectations for the longer term -- five to 10 years ahead -- rose to 3.2 percent in October, the highest in more than a year, having stood at 3 percent for the previous five months.

Michael Saunders, economist at Citigroup, said the uptick in inflation expectations was unlikely to alarm the Bank of England, whose immediate priority is to avoid deflation risks.

"Indeed, the MPC may regard the rise in inflation expectations as a sign of success," Saunders added.