May 25, 2018 / 2:02 PM / 9 months ago

UK short-run inflation expectations rise for first time since October - Citi/YouGov

FILE PHOTO: A shopper carries a basket in a supermarket in London, Britain April 11, 2017. REUTERS/Neil Hall

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

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