LONDON (Reuters) - The British public’s inflation expectations for the coming year rose this month for the first time since October, despite a series of bigger-than-expected falls in the official measure of consumer price inflation, a Citi/YouGov survey showed on Friday.
Short-term inflation expectations rose to 2.5 percent from April’s reading of 2.4 percent, while expectations for the next five to 10 years moved back in line with their long-run average of 3.2 percent from 3.1 percent the month before.
“We suspect that rising oil and thus fuel prices have led to the reversal of the downtrend in short-term expectations,” Citi economists Christian Schulz and Ann O’Kelly said.
Official data on Wednesday showed consumer price inflation unexpectedly dropped to a 14-month low of 2.4 percent.
The Citi/YouGov survey polled more than 2,000 people on May 22 and May 23.
Reporting by David Milliken, editing by Andy Bruce