LONDON (Reuters) - The British public’s expectations for the level of inflation over the next 12 months fell sharply in September, tracking a fall in the official measure of consumer price inflation last month, a monthly survey showed on Wednesday.
The Citi/YouGov survey showed that on average people in September expected consumer prices to rise by 2.9% over the next 12 months, down from 3.2% in August, while expectations for the next five to 10 years fell to 3.0% from 3.1%.
“Expectations declined despite the spike in oil prices this month due to events in the Middle East. This could suggest that fuel prices have either not responded yet or were overshadowed by the receding probability of a no-deal Brexit,” Citi economists Christian Schulz and Ann O’Kelly wrote.
Consumer price inflation fell sharply to 1.7% in August from 2.1% in July, its lowest since December 2016.
The Citi/YouGov survey was conducted on Sept. 19 and Sept. 20, and sampled 2,004 adults.
Reporting by David Milliken, editing by Andy Bruce