LONDON (Reuters) - The British public’s expectations for inflation over the next 12 months dropped to 2.6 percent this month from October’s four-year high of 2.8 percent, a monthly survey by polling company YouGov showed on Wednesday.
The poll, conducted for U.S. bank Citi, showed that longer-term inflation expectations for the next five to 10 years remained unchanged at 3.2 percent after the BoE raised interest rates for the first time in a decade on Nov. 2.
This was in line with their long-run average, but still the joint-highest since 2014.
“Long-term inflation expectations ... may suggest that monetary stimulus can be reduced further, but peaking short-term inflation expectations do not suggest urgency,” Citi economists Christian Schulz and Ann O‘Kelly wrote in a note to clients.
YouGov polled 2,038 adults on Nov. 20 and Nov. 21.
Reporting by David Milliken; editing by Stephen Addison