August 30, 2019 / 6:38 AM / 3 months ago

UK public inflation expectations rise to highest since 2013 - Citi/Yougov

FILE PHOTO: A shopper checks her shopping list in a supermarket in London, Britain April 11, 2017. REUTERS/Neil Hall

LONDON (Reuters) - British households’ expectations for inflation in the year ahead rose in August to their highest level since 2013, possibly reflecting the rising chance of a no-deal Brexit, a survey from U.S. bank Citi and pollsters YouGov showed on Friday.

The public expects inflation over the next 12 months to rise to 3.2%, up from 2.9% in July.

“Such high levels have previously usually been associated with high energy prices,” economists at Citi said in a research note.

“However, in the absence of those at the moment, the increase could be driven by rising chances of a rupture with the EU on Oct. 31, which could lead to higher consumer prices via tariffs, supply disruptions and weaker sterling.”

Reporting by Andy Bruce; editing by Jason Neely

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