LONDON (Reuters) - Britons’ expectations of inflation over the coming year held steady in March at 2.8 percent for the third consecutive month, a YouGov/Citi survey showed on Tuesday.
The reading will provide some comfort to the Bank of England which is concerned that a prolonged period of above-target inflation could become entrenched.
Inflation has been above the central bank’s 2 percent target for much of the past five years and is expected to rise further before the end of the year.
“The figures suggest that the recent depreciation in sterling and upward revisions to the fiscal deficit announced in the Budget have not lifted inflation expectations further,” said Citi economist Michael Saunders.
Inflation expectations over the longer-term -- 5 to 10 years ahead -- also held steady in March, at 3.5 percent.
The survey was conducted March 20-22, in the immediate aftermath of the British government’s annual budget.
Reporting by Christina Fincher